The Best Market for First-Time Homebuyers Is … – NMP Skip to main content

The Best Market for First-Time Homebuyers Is …

Jul 17, 2017
Newcomers to the housing market will find more financially favorable opportunities in Texas and much, much fewer in California, according to new data from WalletHub

Newcomers to the housing market will find more financially favorable opportunities in Texas and much, much fewer in California, according to new data from WalletHub.
 
In an analysis of 300 cities using criteria ranging from housing affordability to real-estate tax rate to property-crime rate, WalletHub found the Lone Star State was home to four of the top 10 markets for first-time homebuyers: McKinney (number one), Frisco (number two), Allen (number three) and Richardson (number seven); another Texas metro market, Laredo, scored as the lowest cost-of-living index among the markets analyzed. Fourth-place Cary, N.C., was the sole coastal market in the top 10, while another North Carolina city, Fayetteville, had the most affordable housing options available.
 
At the other end of the spectrum, California dominated the list with seven of the 10 worst places for first-time homebuyers, with Santa Barbara taking the unhappy honors at the top of this sorry list. Santa Barbara also offered least affordable housing options (it was 12.7 times more expensive than Fayetteville) while Sunnyvale, Calif., had both the highest cost-of-living index (2.9 times higher than Laredo) and the lowest rent-to-price ratio (7.3 times lower than Detroit).
 
Honolulu straddled the best and worst lists with the lowest real-estate tax rate, 0.29 percent and the highest average energy cost per household, $455.51.

 
About the author
Published
Jul 17, 2017
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026