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Buying a home for the first time is an exciting and important milestone in the lives of most consumers. But the collapse of the housing bubble nearly a decade ago remains fresh in the minds of many potential home buyers, especially given the different levels of economic recovery among U.S. cities.

In 2015, the National Association of Realtors® reported that among buyers of primary residences, 32 percent were first-timers, whereas the historical average has been 40 percent for this group. And according to a recent Gallup poll, 38 percent of non-homeowners in 2016 don’t plan to buy a home in the foreseeable future, compared with 31 percent three years ago.

But many consumers’ zeal for home buying hasn’t waned. To determine the attractiveness of first-time home-buyer markets across the U.S., WalletHub’s analysts compared 300 cities of varying sizes across 23 key metrics. Our data set ranges from housing affordability to real-estate taxes to property-crime rates. Continue reading below for our findings, expert commentary and a full description of our methodology.

1. Main Findings
2. Rankings by City Size
3. Ask the Experts
4. Methodology

Main Findings

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/37633/geochart-homebuyer.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2tagyb8;  

Rankings by City Size

Rank	Large Cities (Score)	Rank	Midsize Cities (Score)	Rank	Small Cities (Score)
1	Denver, CO (66.445)	1	Fort Collins, CO (67.97)	1	Charleston, SC (68.797)
2	Tampa, FL (65.524)	2	McKinney, TX (67.621)	2	Frisco, TX (68.565)
3	Colorado Springs, CO (65.383)	3	Fort Wayne, IN (66.847)	3	Greeley, CO (67.965)
4	Raleigh, NC (63.523)	4	Richmond, VA (66.75)	4	Arvada, CO (67.508)
5	Pittsburgh, PA (63.338)	5	Boise, ID (66.684)	5	Thornton, CO (67.01)
6	Atlanta, GA (63.318)	6	Scottsdale, AZ (65.708)	6	Denton, TX (65.746)
7	Minneapolis, MN (62.866)	7	Cary, NC (65.409)	7	Yakima, WA (65.618)
8	Nashville, TN (62.844)	8	Overland Park, KS (65.303)	8	Bellevue, WA (65.052)
9	El Paso, TX (62.754)	9	Lincoln, NE (64.573)	9	Boulder, CO (64.83)
10	Aurora, CO (62.742)	10	Henderson, NV (63.51)	10	Roanoke, VA (64.808)
11	Dallas, TX (62.568)	11	Peoria, AZ (63.501)	11	Westminster, CO (64.659)
12	Lexington, KY (62.445)	12	Chandler, AZ (63.43)	12	Pueblo, CO (64.479)
13	Omaha, NE (62.182)	13	Madison, WI (63.134)	13	Allen, TX (64.351)
14	Mesa, AZ (61.791)	14	Orlando, FL (63.095)	14	Centennial, CO (64.312)
15	Phoenix, AZ (61.625)	15	Gilbert, AZ (63.064)	15	Richardson, TX (64.307)
16	Seattle, WA (61.33)	16	Plano, TX (62.986)	16	Longmont, CO (64.121)
17	San Diego, CA (61.184)	17	Grand Rapids, MI (62.962)	17	Spokane Valley, WA (64.079)
18	Charlotte, NC (61.103)	18	Vancouver, WA (62.614)	18	Roseville, CA (63.994)
19	Fort Worth, TX (60.848)	19	Grand Prairie, TX (62.495)	19	Lakewood, CO (63.953)
20	Sacramento, CA (60.563)	20	Salt Lake City, UT (62.38)	20	Murfreesboro, TN (63.744)
21	Las Vegas, NV (60.271)	21	Glendale, AZ (62.167)	21	Wilmington, NC (63.731)
22	Louisville, KY (59.739)	22	Amarillo, TX (62.148)	22	Renton, WA (62.933)
23	Oklahoma City, OK (59.466)	23	Tempe, AZ (62.014)	23	Surprise, AZ (62.757)
24	Portland, OR (59.414)	24	St. Petersburg, FL (61.935)	24	Carrollton, TX (62.551)
25	Virginia Beach, VA (59.088)	25	Irvine, CA (61.871)	25	Roswell, GA (62.237)
26	Riverside, CA (58.913)	26	St. Paul, MN (61.36)	26	Vacaville, CA (61.928)
27	Austin, TX (58.864)	27	Cincinnati, OH (61.031)	27	Manchester, NH (61.845)
28	Tucson, AZ (58.855)	28	Reno, NV (60.971)	28	Burbank, CA (61.817)
29	Los Angeles, CA (58.615)	29	Rancho Cucamonga, CA (60.357)	29	Boca Raton, FL (61.787)
30	Boston, MA (58.574)	30	Elk Grove, CA (60.312)	30	Escondido, CA (61.745)
31	Anaheim, CA (58.55)	31	Norfolk, VA (60.298)	31	Norman, OK (61.72)
32	Arlington, TX (58.402)	32	Santa Rosa, CA (60.224)	32	Chico, CA (61.585)
33	Columbus, OH (58.309)	33	Cape Coral, FL (60.177)	33	Alexandria, VA (61.567)
34	Bakersfield, CA (57.848)	34	Port St. Lucie, FL (60.017)	34	Murrieta, CA (61.493)
35	Chicago, IL (57.714)	35	Garland, TX (59.964)	35	Rialto, CA (61.387)
36	Jacksonville, FL (57.7)	36	Hayward, CA (59.819)	36	Fairfield, CA (61.243)
37	Tulsa, OK (57.439)	37	Ontario, CA (59.79)	37	El Cajon, CA (61.189)
38	San Antonio, TX (57.345)	38	Spokane, WA (59.384)	38	Santa Maria, CA (61.152)
39	Philadelphia, PA (57.035)	39	Newport News, VA (59.382)	39	Vista, CA (61.098)
40	Corpus Christi, TX (56.928)	40	Durham, NC (59.36)	40	Clearwater, FL (60.996)
41	Kansas City, MO (56.74)	41	Garden Grove, CA (59.192)	41	North Charleston, SC (60.928)
42	Santa Ana, CA (56.655)	42	Irving, TX (59.071)	42	Hampton, VA (60.918)
43	San Jose, CA (56.654)	43	Chesapeake, VA (59.002)	43	Green Bay, WI (60.895)
44	St. Louis, MO (56.558)	44	Glendale, CA (58.743)	44	Sandy Springs, GA (60.884)
45	Indianapolis, IN (56.529)	45	Pembroke Pines, FL (58.646)	45	Athens-Clarke, GA (60.555)
46	Long Beach, CA (56.051)	46	Lancaster, CA (58.627)	46	Everett, WA (60.546)
47	Honolulu, HI (55.89)	47	Winston-Salem, NC (58.536)	47	Costa Mesa, CA (60.472)
48	Fresno, CA (55.854)	48	Salinas, CA (58.459)	48	Stamford, CT (60.167)
49	Milwaukee, WI (55.207)	49	Knoxville, TN (58.392)	49	Carlsbad, CA (59.815)
50	Miami, FL (55.079)	50	Fontana, CA (58.369)	50	Cedar Rapids, IA (59.673)
51	Wichita, KS (55.031)	51	Huntington Beach, CA (58.29)	51	Lowell, MA (59.649)
52	San Francisco, CA (54.632)	52	Moreno Valley, CA (58.289)	52	Naperville, IL (59.646)
53	Houston, TX (54.237)	53	Laredo, TX (58.285)	53	Temecula, CA (59.592)
54	New Orleans, LA (54.221)	54	Oceanside, CA (58.283)	54	Savannah, GA (59.469)
55	Memphis, TN (53.215)	55	Springfield, MA (58.146)	55	Davenport, IA (59.431)
56	New York, NY (53.143)	56	Corona, CA (57.741)	56	Victorville, CA (59.424)
57	Albuquerque, NM (52.922)	57	Oxnard, CA (57.729)	57	Palm Bay, FL (59.416)
58	Baltimore, MD (52.696)	58	Tacoma, WA (57.723)	58	Fullerton, CA (59.326)
59	Washington, DC (52.491)	59	Jersey City, NJ (57.688)	59	Pasadena, CA (59.281)
60	Oakland, CA (51.876)	60	North Las Vegas, NV (57.538)	60	Kent, WA (59.256)
61	Cleveland, OH (51.331)	61	Pomona, CA (57.449)	61	Clovis, CA (59.236)
62	Detroit, MI (39.227)	62	Chula Vista, CA (57.223)	62	Mission Viejo, CA (59.187)
	()	63	Salem, OR (57.207)	63	Kenosha, WI (59.158)
	()	64	Augusta, GA (57.19)	64	Ann Arbor, MI (59.154)
		65	Hialeah, FL (57.179)	65	Hillsboro, OR (59.152)
		66	Palmdale, CA (57.13)	66	Thousand Oaks, CA (59.142)
		67	Eugene, OR (57.123)	67	Gainesville, FL (59.049)
		68	Huntsville, AL (57.083)	68	Sterling Heights, MI (59.038)
		69	Stockton, CA (56.997)	69	Orange, CA (58.988)
		70	Fort Lauderdale, FL (56.995)	70	Davie, FL (58.87)
		71	Modesto, CA (56.953)	71	Concord, CA (58.85)
		72	San Bernardino, CA (56.533)	72	Richmond, CA (58.795)
		73	Greensboro, NC (56.377)	73	Visalia, CA (58.574)
		74	Providence, RI (56.296)	74	Federal Way, WA (58.492)
		75	Fremont, CA (56.295)	75	Hollywood, FL (58.396)
		76	Santa Clarita, CA (55.973)	76	El Monte, CA (58.39)
		77	Little Rock, AR (55.793)	77	Ventura, CA (58.365)
		78	Des Moines, IA (55.596)	78	New Haven, CT (58.362)
		79	Worcester, MA (55.578)	79	Mesquite, TX (58.258)
		80	Columbus, GA (55.517)	80	Sunnyvale, CA (58.216)
		81	Birmingham, AL (55.021)	81	Downey, CA (58.208)
		82	Yonkers, NY (54.928)	82	Santa Clara, CA (58.187)
		83	Aurora, IL (54.588)	83	Sunrise, FL (58.158)
		84	Jackson, MS (54.252)	84	Portsmouth, VA (58.046)
		85	Mobile, AL (54.038)	85	New Bedford, MA (58.011)
		86	Akron, OH (53.092)	86	South Gate, CA (57.93)
		87	Springfield, MO (52.987)	87	Warren, MI (57.722)
		88	Montgomery, AL (52.844)	88	Lansing, MI (57.719)
		89	Buffalo, NY (51.662)	89	Norwalk, CA (57.646)
		90	Tallahassee, FL (51.402)	90	Simi Valley, CA (57.575)
		91	Baton Rouge, LA (51.036)	91	Vallejo, CA (57.526)
		92	Shreveport, LA (50.781)	92	West Covina, CA (57.459)
		93	Toledo, OH (50.612)	93	Antioch, CA (57.445)
		94	Newark, NJ (48.473)	94	West Palm Beach, FL (57.44)
		95	Rochester, NY (48.087)	95	Torrance, CA (57.297)
		96	Anchorage, AK (47.8)	96	Peoria, IL (57.273)
		97	Rockford, IL (47.612)	97	Compton, CA (57.272)
		98	Fayetteville, NC (38.832)	98	Gresham, OR (57.24)
			()	99	Yuma, AZ (57.195)
			()	100	Westminster, CA (57.178)
			()	101	Tuscaloosa, AL (57.162)
			()	102	Hartford, CT (56.956)
			()	103	Miramar, FL (56.905)
			()	104	Coral Springs, FL (56.875)
			()	105	Joliet, IL (56.69)
			()	106	Beaverton, OR (56.677)
			()	107	Livonia, MI (56.611)
			()	108	High Point, NC (56.593)
			()	109	Fort Smith, AR (56.509)
			()	110	Inglewood, CA (56.445)
			()	111	Lakeland, FL (56.404)
			()	112	Dearborn, MI (56.393)
			()	113	San Mateo, CA (56.181)
			()	114	Broken Arrow, OK (56.168)
			()	115	Pompano Beach, FL (56.128)
			()	116	Quincy, MA (56.111)
			()		Plantation, FL
			()		Santa Monica, CA
			()		Daly City, CA
			()		Elgin, IL
			()		Fall River, MA
			()		Carson, CA
			()		Allentown, PA
			()		Miami Gardens, FL
			()		Berkeley, CA
			()		Lynn, MA
			()		Elizabeth, NJ
			()		Santa Barbara, CA
			()		Albany, NY
			()		Bridgeport, CT
			()		Erie, PA
			()		Springfield, IL
			()		Waukegan, IL
			()		Brockton, MA
			()		Waterbury, CT
			()		Paterson, NJ
			()		Cambridge, MA
			()		Dayton, OH
			()		Miami Beach, FL
			()		Flint, MI

 

Ask the Experts

Purchasing real estate for the first time is understandably a nerve-racking endeavor for many consumers. It’s neither a decision to take lightly nor a transaction to conduct without the assistance of a professional or previous experience. To help ease the process, we’ve asked a panel of experts to provide insightful advice for consumers in the market for their first home. Click on the experts’ profiles below to read their bios and responses to the following key questions:

1. What should first-time home buyers consider when choosing a neighborhood?
2. How do you know that you are financially ready to buy your first home?
3. What do you recommend as the minimum down payment for a first-time home buyer?
4. Historically, 40 percent of homes bought were purchased by first-time home buyers. Since the Great Recession, that number has hovered closer to 30 percent. Will the market for first-time home buyers make a comeback in 2016?
5. How can federal, state and local policymakers responsibly and effectively increase home affordability, particularly for first-time home buyers?

Methodology

To determine the most favorable housing markets for first-time home buyers, WalletHub’s analysts compared 300 U.S. cities of varying sizes across three key dimensions: 1) Affordability, 2) Real-Estate Market and 3) Quality of Life.

We evaluated these dimensions using 23 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a scale of 0 to 100, with 100 representing the most favorable conditions for first-time home buyers.

We then calculated overall scores for each city using the weighted average across all metrics, which we then used to construct our overall rankings. With regard to our sample, please note that “city” refers to city proper and excludes surrounding metro areas. Data for the metrics marked with an asterisk (*) were available only at the state level.

For this particular study, we categorized the cities based on the following population sizes:

• Large cities: More than 300,000 people
• Midsize cities: 150,000 to 300,000 people
• Small cities: Fewer than 150,000 people

Affordability – Total Points: 33.33

• Housing Affordability: Triple Weight (~14.29 Points)Note: This metric was calculated by dividing the median annual household income by the median house price.
• Average Cost of Homeowner’s Insurance: Full* Weight (~4.76 Points)
• Cost of Living: Full Weight (~4.76 Points)
• Cost per Square Foot: Full Weight (~4.76 Points)Note: This metric measures specifically the median sale price per average home square footage.
• Real-Estate Tax Rate: Full Weight (~4.76 Points)

Real-Estate Market – Total Points: 33.33

• Rent-to-Price-Ratio: Double Weight (~9.52 Points)
• Housing-Market Health Index: Full Weight (~4.76 Points)
• Percentage of Homes Sold in One Year: Full Weight (~4.76 Points)
• Median Home-Price Appreciation: Double Weight (~9.52 Points)
• Foreclosure Rate: Full Weight (~4.76 Points)
• Buy vs. Rent Breakeven Horizon: Full Weight
• Percentage of Listings with Price Cuts: Full Weight
• Percentage of Housing Units that Were Built in 2014 or Later: Full Weight
• Building-Permit Activity (number of units permits pulled per 1,000 residents): Full Weight

Quality of Life – Total Points: 33.33

• WalletHub “Recreation” Ranking: Full Weight (~3.33 Points)
• WalletHub “Recession Recovery” Ranking: Full Weight (~3.33 Points)
• WalletHub “Weather” Ranking: Full Weight (~3.33 Points)
• WalletHub “School Systems” Ranking: Double Weight (~6.67 Points)
• WalletHub “Driver-Friendliness” Ranking: Full Weight (~3.33 Points)
• WalletHub “Jobs Availability” Ranking: Full Weight (~3.33 Points)
• Total Home-Energy Cost: Full Weight (~3.33 Points)
• Violent-Crime Rate: Full Weight (~3.33 Points)

 Sources: Data used to create these rankings were collected from the U.S. Census Bureau, Council for Community and Economic Research, Zillow, Federal Bureau of Investigation, Insurance Information Institute, Renwood RealtyTrac and WalletHub research.

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