Top 10 Best U.S. Cities for First-Time Homebuyers in 2025

When it comes to buying your first home, location is everything. According to Neighbors Bank’s 2025 Top 10 Cities for First-Time Homebuyers report, cities like Oklahoma City, Huntington (WV), and Lubbock (TX) are among the best metros for affordability, access to financing, and overall quality of life.

As Jake Vehige, President of Mortgage Lending at Neighbors Bank, notes, buying a home for the first time is a major milestone, and today’s homebuyers need to carefully weigh their options. “We focused on cities where housing costs align well with local incomes, down payment assistance programs are readily available, and where buyers can settle into a stable and rewarding life,” Vehige explains.

The Top 10 Cities for First-Time Homebuyers

Oklahoma City, OK

Median Home Price: $240,048

Monthly Housing Costs: 28% of median income
Oklahoma City tops the list with affordable housing and low monthly payments relative to the local median income. The city also benefits from low property taxes and high FHA and VA loan activity, making it easier for first-time buyers to enter the market. Beyond affordability, Oklahoma City’s cultural attractions, year-round sunshine, and vibrant downtown areas, like Bricktown, make it an appealing place to live.

Huntington-Ashland, WV-KY-OH

Housing Costs: 22% of median income
This tri-state metro area offers the lowest home prices and cost of living on the list, making it an ideal spot for first-time buyers. With high utilization of FHA, VA, and USDA loans, it’s also home to a strong support system for potential homeowners. Nature lovers will enjoy the region’s Appalachian hikes and seasonal festivals.

Lubbock, TX

Housing Costs: 27% of median income
Known for its high share of FHA loan recipients and no state income tax, Lubbock stands out as one of the most affordable places to buy a home in Texas. It also boasts more than 260 sunny days each year, Texas Tech football, and access to outdoor recreation, including the Caprock Canyons State Park.

Baton Rouge, LA

Housing Costs: Below 30% of income
Baton Rouge offers a good balance of affordable housing, low property taxes, and access to FHA and USDA loan programs. Residents can enjoy the subtropical climate, jazz music, and delicious local cuisine, including gumbo and beignets.

Pittsburgh, PA

Housing Costs: 25% of median income
Pittsburgh, often regarded as an East Coast city without the hefty price tag, offers affordable housing and low income taxes. With a rich cultural scene, excellent food, and family-friendly attractions, Pittsburgh provides a great opportunity for first-time buyers seeking value and lifestyle.

St. Louis, MO

Housing Costs: 30.5% of income
St. Louis features a blend of moderate home prices, USDA-eligible areas, and a thriving arts and sports scene. The cost of living remains sub-90, making it affordable for first-time buyers. Whether it’s sports, food, or culture, St. Louis offers a dynamic lifestyle.

Jackson, MS

Housing Costs: Lowest relative to income in the top 10
Jackson stands out with the most affordable housing in relation to income among the top 10 cities. Thanks to high access to FHA, VA, and USDA loans, it’s an excellent choice for first-time buyers looking for affordability. Mild winters and low costs help make it a year-round affordable option.

Indianapolis-Carmel-Greenwood, IN

Housing Costs: 30% of income
With a below-average cost of living and low-income taxes, this metro area offers manageable housing costs across most counties. First-time homebuyers will find budget room to explore the Indy 500 and the Monon Trail while enjoying the many outdoor activities the area has to offer.

Cincinnati, OH

Housing Costs: 30% of income
While housing costs in Cincinnati are just near the affordability threshold, the city’s below-average cost of living, lower taxes, and abundant loan options make it an attractive place for first-time buyers. Plus, the family-friendly environment and local attractions, like the zoo, offer plenty of long-term appeal.

Chicago-Naperville-Elgin, IL-IN

• Housing Costs: 30% of income
  Despite the higher property taxes and home prices compared to other cities on the list, Chicago still offers affordability for many buyers due to the availability of FHA and VA loans. The city’s strong economy, lakefront views, and cultural offerings make it a desirable location for those looking to settle down.

Why These Cities Stand Out

The top cities for first-time homebuyers share some common traits that make them especially appealing. For one, many of them have housing costs that represent 30% or less of the median household income, which is considered a key affordability benchmark. Additionally, these cities boast favorable property taxes and sales taxes, creating a lower overall financial burden for buyers.

Loan Programs That Help First-Time Homebuyers

Many of the cities listed above also offer strong access to government-backed loans, which are particularly beneficial for first-time buyers who may face challenges saving for a large down payment. Some of the most popular loan options include:

• FHA Loans: These government-backed loans require as little as 3.5% down, making them ideal for first-time buyers with limited savings. They also have more lenient credit requirements.
• HomeReady and Home Possible: Offered by Fannie Mae and Freddie Mac, these loans require just 3% down and provide benefits like reduced mortgage insurance costs.
• VA Loans: Available to veterans and active-duty service members, VA loans offer 100% financing and no private mortgage insurance.
• USDA Loans: Designed for buyers in rural or suburban areas, USDA loans also offer 100% financing with no down payment required.

The Takeaway

For first-time homebuyers, the dream of homeownership is more accessible than ever in these 10 cities. From Oklahoma City to Chicago, these metros offer affordable housing, strong loan support, and access to government-backed financing programs, helping buyers make that all-important leap into homeownership. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.