Greg Taylor SVP, Performance Marketing and Media Buying | realtors.com
First-time homebuyers are navigating a challenging housing market, but certain cities offer more promising opportunities. A new report by Realtor.com's economic research team highlights the best markets for first-time buyers in 2025, based on factors such as local prices, incomes, and amenities.
Harrisburg, Pennsylvania leads the rankings due to its moderate home prices and strong economic outlook. The list also features locations in New York, Florida, Arkansas, Michigan, and the mid-Atlantic region.
"The places highlighted offer opportunities for first-timers in terms of the cost of housing, availability of homes for sale, and quality of the location," stated Danielle Hale, Chief Economist at Realtor.com. She noted that even in these favorable areas, buyers might face trade-offs to secure a purchase.
In 2024, only 24% of successful homebuyers were first-timers—a record low. High home prices and mortgage rates pose significant challenges for new buyers who typically have lower incomes and savings compared to seasoned homeowners.
However, the report suggests that starter homes in identified markets may be more accessible than renting. Harrisburg stands out with a median home price of $140,000. Even with 7% interest rates and a minimal down payment, monthly payments remain below local rental costs.
Chris Timmons from an independent real estate brokerage commented on Harrisburg's market: "Truthfully, it’s somewhat easier to buy a house than it is to rent an apartment in Harrisburg." He emphasized the affordability of townhomes as an entry point into homeownership.
Harrisburg benefits from its central location between major cities like Philadelphia and Baltimore. Companies such as Chewy and Amazon provide logistics jobs locally. Major employers include Hershey Foods and Penn State Hershey Medical Center.
Timmons observed that many young buyers view their purchases as investments rather than permanent homes: "Their attitude seems to have shifted... where a house is not just a place to live but an investment."
Other top-ranked cities include Rochester in New York with affordable median home prices at $129,900 and government assistance programs for first-time buyers. Florida's Villas, Lauderdale Lakes, and Altamonte Springs are noted for their relatively low prices within rapidly growing metro areas.
Lansing in Michigan offers employment through Michigan State University and General Motors. North Little Rock provides economic benefits shared with Little Rock while maintaining lower housing costs. Baltimore is recognized as the largest city on the list with competitive pricing.
Despite ongoing difficulties across many markets for new buyers in 2025, there are positive trends emerging—inventory levels are increasing while price growth slows down post-pandemic.
According to Hale: "While home prices remain high...the year is expected to see more inventory hit the market—a silver lining for shoppers who will see more or less choice depending on where they are."
The report analyzed thousands of Census-Designated Places within major metropolitan areas across America before selecting these top ten locations:
1. Harrisburg (PA) - Median price: $140K
2. Rochester (NY) - Median price: $129.9K
3. Villas (FL) - Median price: $236.95K
4. Lauderdale Lakes (FL) - Median price: $154.85K
5. Altamonte Springs (FL) - Median price: $229.4K
6. Lansing (MI) - Median price: $135K
7. North Little Rock (AR) - Median price: $160K
8. Baltimore (MD) - Median price: $210K
9.Tonawanda(NY)-Medianprice:$229 .9 K
10.Wilmington(DE)-Medianprice:$222 K
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