Top Cities for First-Time Homebuyers Revealed: Florida Dominates Rankings!

Sunrise, Florida, USA - As the housing market for first-time buyers continues to shift dramatically, some cities in Florida are standing out as shining examples of opportunity, while others paint a more dismal picture. Recent analyses by WalletHub and other organizations reveal a stark contrast in homebuying potential across the U.S., particularly highlighting Florida’s appeal compared to California’s struggles.

WalletHub evaluated 300 U.S. cities based on 22 factors, including housing costs, weather, crime rates, and school quality. It turns out that many of the top cities for first-time homebuyers are located in Florida, making it a hotspot for those looking to escape the high prices seen elsewhere, particularly in California. Business Insider reports that the market share of first-time homebuyers dipped to a historic low of 24% in 2024, the lowest point since 1981. Interestingly, as the median age of these buyers rises from 35 to 38, the dynamics of the market continue to evolve.

Top Cities for First-Time Homebuyers

The best cities for first-time homebuyers according to WalletHub are:

• Palm Bay, Florida – Population: 142,023, Median home-sale price: $327,000
• Boise, Idaho – Population: 237,963, Median home-sale price: $511,250
• Tampa, Florida – Population: 414,547, Median home-sale price: $435,000
• Surprise, Arizona – Population: 167,564, Median home-sale price: $435,000
• Huntsville, Alabama – Population: 230,402, Median home-sale price: $343,000
• Gilbert, Arizona – Population: 288,790, Median home-sale price: $593,500
• Cape Coral, Florida – Population: 233,025, Median home-sale price: $368,800
• Orlando, Florida – Population: 334,854, Median home-sale price: $403,500
• Lakeland, Florida – Population: 124,990, Median home-sale price: $315,000
• Sunrise, Florida – Population: 100,128, Median home-sale price: $422,500

Palm Bay shines brightly at the top of this list, possessing high home appreciation rates and a commendable millennial homeownership rate. Tampa follows closely, boasting a robust job market and excellent educational opportunities, making it an ideal location for new homeowners.

Challenges for Buyers

On the flip side, the situation in certain California cities poses serious challenges. For instance, cities like Berkeley and Santa Monica see median home-sale prices soaring into the millions, rendering them largely inaccessible for first-time buyers. WalletHub lists the worst offenders:

• Berkeley, California – Population: 121,749, Median home-sale price: $1,350,000
• Santa Monica, California – Population: 90,729, Median home-sale price: $1,605,000
• Oakland, California – Population: 443,554, Median home-sale price: $868,000
• San Francisco, California – Population: 827,526, Median home-sale price: $1,500,000
• Santa Barbara, California – Population: 87,291, Median home-sale price: $1,632,500

The ongoing decline in the market share of first-time buyers is concerning. Many factors contribute to this unfavorable trend, including rising interest rates, market prices, and mortgage eligibility challenges. Over 45% of potential buyers are worried about high property prices, while many are adjusting their expectations regarding home sizes and locations.

Shifting Buyer Demographics

So who exactly are these first-time homebuyers? The average first-time buyer in 2025 is now 35 years old, a notable increase from 29 in 1981. Curious to know more? A significant number—around 80%—are using their savings for down payments, with some relying on gift funds from family and friends. REsimpli provides further insights, revealing that nearly 67% of millennials have no savings for a home down payment and many are considering delaying purchases due to high mortgage rates.

As homebuyers navigate this challenging landscape, it’s clear that location remains paramount. Buyers continue to seek affordability and quality of life, with over 70% leaning toward suburban living. It seems there’s indeed something to be said for finding a good balance of price and community.

In summary, as the first-time homebuyer market continues to evolve, Florida emerges as a beacon of hope amid rising challenges in other states. Whether seeking that dream home or simply trying to make ends meet, it’s important for potential buyers to stay informed, adjust their strategies, and, perhaps, focus on locations that promise a happier, healthier home life.