What are the best and worst US cities for first-time home buyers in 2024?

Navigating the real estate market can be daunting, especially for first-time home buyers. With fluctuating prices, varying tax rates, and diverse living conditions, choosing the right city to make this significant investment is crucial.

The personal-finance website WalletHub has released its report on the Best & Worst Cities for First-Time Home Buyers in 2024. This comprehensive analysis aims to identify the cities where first-time buyers can save the most money and enjoy the best living conditions. The website evaluated real estate in 300 cities of varying sizes using 22 key metrics, ranging from housing affordability and real-estate tax rates to crime rates and overall quality of life.

Best and worst cities for first time homebuyers

Florida cities dominate the list, with Palm Bay, Cape Coral, and Port St. Lucie taking the top three spots. Palm Bay leads the country in active home listings per capita and new building permits per capita, making it a prime location for first-time buyers.

Cape Coral and Port St. Lucie also boast high numbers of new building permits and active listings, along with low crime rates and good school systems, making them attractive options for new homeowners.

California cities overwhelmingly populate the worst cities list. High real estate prices and the cost of living contribute to cities like Berkeley, Santa Monica, and San Francisco being less favorable for first-time buyers. New York City also ranks poorly due to its high home costs and competitive real estate market.

Other facts in the findings

Detroit, MI has the most affordable housing, with a median house price divided by median annual household income that is 10.4 times cheaper than in Santa Barbara, CA, the city with the least affordable housing.

Honolulu has the lowest real-estate tax rate, which is 11 times lower than in Waterbury, CT, the city with the highest.