According to the National Association of REALTORS, first-time buyer made up 33 % of all home buyers, a decrease from last year at 34 %. Purchasing a home is a big financial decision for homebuyers, especially those who might be going through the home buying process for the first time. Often times first-time buyers are looking for that extra reassurance that they are making the right decision. Some first-time buyers use the FHA loan to purchase their first home because of their low credit and low down payment requirements. A recent Mortgage Research Center study identified the best and worst cities for first-time homebuyers.
In order to identify the best cities, Mortgage Research Center collected data from the 100 most populated cities in the United States and evaluated the strength of each city across 21 relevant variables of Affordability, Economic Wellness & Quality of Life.
Let’s take a closer look into our findings and a breakdown of the methodology of the best and worst cities for first-time homebuyers.
Prospective home-buyers should certainly consider some of the cities that made it to the top of this list.
El Paso was able to secure the top spot on this list. The mission statement for the city of El Paso is “Deliver exceptional services to support a high quality of life and place for our community.” El Paso also offers a wide variety of attractions to visit, such as the Digie 3D Wall, Downtown Art and Farmers Market, a zoo, and many other fun things.
Austin secured the second spot on this list. Austin is the capital city of Texas and is known for its music, but the city also offers world-class museums and tons of beautiful outdoor spaces. Austin also has a creative community, with a lot of friendly people to make people feel at home.
Raleigh is the capital of North Carolina, and is well known for its universities. Raleigh was able to secure the third spot on the list. The city will often times post upcoming events on its website to keep the public informed about upcoming festivals, sporting events, and many other fun things to do.
Scottsdale is a desert city in Arizona east of state capital Phoenix. Scottsdale secured the fourth spot on the list. This city has tons of outdoor activities to enjoy. Some of these activities include hiking, floating on the Lower Salt River, riding the trails, and much more.
Virginia Beach is a vibrant coastal city of Virginia Beach that was able to secure the fifth spot on the list. Virginia Beach is home to a rich history and variety of arts and entertainment and family-friendly attraction.
Mesa secured the sixth spot on our list. The city offer visitors access to the areas most popular natural attractions, including Superstition Mountains, Apache Trail, Salt and Verde Rivers, Usery Mountain Regional Park and area lakes.
Plano is a city in north Texas that is known as the City of Excellence, so it's no surprise that the city was able to secure the seventh spot on the list. Plano offers city brims with attractions to enjoy, along with a nice art scene, and over 1,000 restaurants to chose from.
Chandler embodies an active lifestyle with easy access to outdoor recreation with endless family-fun, award-winning events, world-class golf facilities, and a vibrant downtown.
Lexington secured the ninth spot on our list. Lexington is seen as the horse capital of the world that is known for horse farms and thoroughbred racetracks like Keeneland. The city also offers street art, nightlife, food, shopping, architecture, history, craft beer, local coffee shops, music and friendly people.
Irving was able to secure the tenth spot on the list. Irving is a city between Dallas and Fort Worth that offers convenient access to the DFW International Airport and the entire DFW Metroplex. Irving is known for it's live music, and bringing some of the biggest names to town. Irving was able to secure the final spot on our top ten list.
|Overall Rank||City||Total Score|
|1||El Paso, TX||539.5|
|6||Virginia Beach, VA||606|
|12||Fort Worth, TX||658.5|
|13||Oklahoma City, OK||674|
|15||Fort Wayne, IN||685.5|
|17||Colorado Springs, CO||693.5|
|19||San Diego, CA||712.5|
|24||Anaheim, CA (Tie)||734.5|
|24||Boise, ID (Tie)||734.5|
|27||San Antonio, TX||744.5|
|33||Chula Vista, CA||772.5|
|39||Santa Ana, CA||793.5|
|42||San Jose, CA||806.5|
|43||St. Petersburg, FL||810|
|45||Corpus Christi, TX||819.5|
Source: Mortgage Research Center
Note: Tie indicates that these cities scored the same average ranking.
In order to determine the 2020 best and worst cities for first-time homebuyers, Mortgage Research Center analyst collected data from the 100 most populated cities in the United States and compared the following dimensions (Quality of Life, Economic Wellness, and Affordability).
We evaluated the strength of each city across those dimensions using 21 relevant variables, which are listed below with their corresponding weights.
Each city was then scored and ranked in each of the 21 variables by multiplying the city’s rank by that variable’s weight. The final rankings were determined by the city’s total score, with the lowest score representing the best city for first-time homebuyers to live.
Data was collected from the US Census Bureau, Department of Housing and Urban Development, Bureau of Labor Statistics, Center for Neighborhood Technology’s H+T Index, Sperling's Best Places, 2019 Home Buyers and Sellers Generational Trends Report, and Mortgage Research Center.