The U.S. housing market has just begun to really emerge from the Great Recession over the last few quarters, but the recovery in the residential real estate market is highly regionalized. Some states are enjoying strong home sales, but many are floundering with minimal growth, especially in the critical first-time home buyer segment.
Consumer research organization WalletHub undertook a study comparing the 300 largest U.S. cities to find out which cities are the most and least attractive to first-time home buyers. The study methodology involved analysis of 17 key metrics, including median house prices, median home price appreciation, real estate taxes and price-to-rent ratios.
Top cities for first-time home buyers
The western states of Oklahoma and Texas dominate the ranking for best cities for first-time home buyers, holding the top seven spots in the rankings. The community of Broken Arrow, Oklahoma was ranked first overall, coming in third in affordability, 34th in real estate market and fourth in community environment. Allen, Texas was second. Norman, Oklahoma came in third on WalletHub’s list, with an affordability ranking of 13th, a real estate ranking of 42nd and a community environment ranking of 12th. Denton, Texas was next on the last (4th overall), with an affordability ranking of 93rd, a real estate ranking of 17th and a community environment ranking of 6th. In fifth place on the list is Frisco, Texas, sporting an affordability ranking of 27th, a real estate ranking of 21st and a community environment ranking of 24th.
Bottom cities for first-time home buyers
California and New Jersey hold the dubious honor of holding four of the bottom five spots for the worst cities for first-time home buyers in the U.S. according to WalletHub. New Bedford, Mass. came in 296th place on the list, with an affordability ranking of 277th, a real estate ranking of 260th and a community environment ranking of 278th. Paterson, New Jersey was ranked 297th, an affordability ranking of 299th, a real estate ranking of 232nd and a community environment ranking of 273rd. Salinas, California held the 298th spot, with an affordability ranking of 290th, a real estate ranking of 276th and a community environment ranking of 262nd. Newark, New Jersey came in in 299th place on WalletHub’s list, sporting an affordability ranking of 298th, a real estate ranking of 220th and a community environment ranking of 289th. Richmond, California came in at the bottom of the heap (300th), an affordability ranking of 288th, a real estate ranking of 295th and a community environment ranking of 280th.
