With July being one of the top months for home sales and a third of all home buyers also being first-timers, the personal-finance website WalletHub took an in-depth look at 2016’s Best & Worst Cities for First-Time Home Buyers.
To determine the most favorable housing markets for first-time buyers, WalletHub’s analysts took the pulse of real estate in 300 cities of varying sizes. Our data set ranges from housing affordability to real-estate tax rate to property-crime rate.
|Best Cities for First-Time Home Buyers||Worst Cities for First-Time Home Buyers|
|1||Overland Park, KS||291||Inglewood, CA|
|2||Greeley, CO||292||Paterson, NJ|
|3||Thornton, CO||293||New York, NY|
|4||Cedar Rapids, IA||294||Miami, FL|
|5||Westminster, CO||295||Compton, CA|
|6||Longmont, CO||296||Santa Barbara, CA|
|7||Boise, ID||297||Berkeley, CA|
|8||Lincoln, NE||298||Oakland, CA|
|9||Centennial, CO||299||Miami Beach, FL|
|10||Lexington, KY||300||Newark, NJ|
Best vs. Worst
- Santa Monica, Calif., has the lowest housing affordability, 6.6 percent, which is 12 times lower than in Detroit, the city with the highest, 76.5 percent.
- Honolulu has the lowest real-estate tax rate, 0.29 percent, which is 12 times lower than in Waukegan, Ill., the city with the highest, 3.49 percent.
- Detroit has the highest rent-to-price ratio, 23.17 percent, which is six times higher than in Sunnyvale, Calif., the city with the lowest, 3.64 percent.
- Laredo, Texas, has the lowest cost-of-living index, which is three times lower than in New York, the city with the highest.
- Mission Viejo, Calif., has the lowest number of property crimes per 1,000 residents, 8.9, which is 12 times lower than in Miami Beach, Fla., the city with the highest, 102.7.
- Shreveport, La., has the lowest average energy cost per household, $127.60, which is four times lower than in Honolulu, the city with the highest, $504.30.