Homebuyers

10 Places First-Time Buyers May Be Able to Find an Affordable Home in 2026

January 20, 2026

The housing market can seem a bit intimidating for first-time buyers heading into 2026. Mortgage rates are in flux, home prices have cooled only in some areas, and the number of homes for sale varies by location.

But some housing markets are giving new buyers a better shot at homeownership than others. These are markets where home prices are within reach, there are plenty of listings to give buyers options, and a monthly mortgage payment leaves room for a comfortable lifestyle.

Rochester, N.Y., Harrisburg, Pa., and Granite City, Ill., are the top three places young buyers can find a home, according to a Realtor.com report. The report covered the top 10 places for first-time buyers to purchase homes.

“This information could help first-time homebuyers who have the flexibility to move choose where to buy their first home,” said Joel Berner, senior economist at Realtor.com.

Realtor.com looked at markets with at least 500 homes for sale. The report factored housing inventory, median list prices, population, household count, household income, forecasted unemployment rates, and average commute times.

Here’s what this list shows about where the math still works for buyers, and how to put that insight to use.

Why first-time homebuyers should check out these housing markets

Affordability is the main draw these markets offer first-time homebuyers.

The typical 25- to 34-year-old earning the local median income in these places may be able to afford a median-priced home without stretching beyond the commonly used rule of thumb used by lenders and housing economists. That means the typical first-time buyer may be able to keep housing costs at or below about 30% of gross monthly income.

(The calculation assumes a 6.25% mortgage rate, a 30-year fixed loan, and a 10% down payment.)

That 30% benchmark is not a hard rule, but it reflects a level where borrowers are less likely to feel stretched once the full cost of ownership is in play. Those costs include the mortgage payment itself, property taxes, homeowners insurance, and, when applicable, homeowner association (HOA) fees.

More homes are for sale in these markets

A row of homes for sale

In addition to home price, each of the markets offers more for-sale housing stock than many larger metropolitan areas. More listings give buyers time to compare homes, negotiate with confidence, and walk away when a deal doesn’t make sense.

And with more homes to choose from, buyers are less likely to waive inspections, rush decisions, or stretch their budgets just to stay competitive. For first-time buyers especially, that flexibility can be the difference between buying comfortably and buying under pressure.

“For those who need to stay in their own metro areas, but are looking to buy their first home there, some of the themes of this report could help them to save money and have easy access to the amenities that they’re looking for,” said Berner.

What should first-time homebuyers consider?

First-time homebuyers should start by figuring out how much home they can afford.

Start with the monthly mortgage payment you’re comfortable carrying. From there, focus on markets where median prices and local costs support that number without forcing tradeoffs elsewhere.

“The actionable advice to first-time homebuyers is to make sure they’re considering the urban centers of their metros, not just the outlying areas,” said Berner. “The central cities often offer affordable homes within reach of all the things first-time homebuyers are looking for.”

Mortgage moves that matter

If you are shopping in one of these top markets, or using them as a benchmark, the mortgage strategy is straightforward: have your mortgage pre-approval letter ready.

Look closely at points, lender fees, and the full loan estimate. In a market where the payment already pencils out under a 30% guideline, small differences in fees can still matter.

“Be prepared to share all your financial history, past and present,” said Los Angeles Realtor Monty Iceman of MontyIceman.com. “The better your credit, the easier it is to secure a good loan at a good rate and terms.

It's also helpful to understand what a 10% down plan really means as it often comes with mortgage insurance. Ask lenders to show you the monthly payment with mortgage insurance included, plus the path to removing it later.