Under $250,000: The 10 Best Cities to Purchase Your First Home, with 3 Locations in Florida

In recent years, the increase in U.S. home prices has made it difficult for first-time and middle-income buyers to afford a home.

Despite the rising housing prices, there are still pockets of affordability, particularly in mid-sized cities and suburbs, where smaller homes in up-and-coming neighborhoods can be found for less than $250,000.

The 10 best markets for purchasing a first home have been ranked by Realtor.com, taking into account factors such as affordability, supply, projected price growth, job availability, and quality of life, including commute times and access to amenities like daycares and shopping.

The top 10 cities for first-time buyers with a median home price below $250,000 are:

1. Harrisburg, Pennsylvania: $140,000
2. Rochester, New York: $129,900
3. Villas, Florida: $236,950
4. Lauderdale Lakes, Florida: $154,850
5. Altamonte Springs, Florida: $229,400
6. Lansing, Michigan: $135,000
7. North Little Rock, Arkansas: $160,000
8. Baltimore, Maryland: $210,000
9. Tonawanda, New York: $229,900
10. Wilmington, Delaware: $222,000

The median priced homes in all cities on this list are significantly cheaper than the U.S. median of $402,502, according to Realtor.com's latest data.

Several cities in Florida still offer affordable homes

Florida has three cities on the list, indicating that homeownership remains attainable in a state experiencing a high influx of relocators from across the country.

In contrast to major cities like Miami and Fort Lauderdale, where home prices exceed the U.S. median, smaller areas such as Villas, Lauderdale Lakes, and Altamonte Springs provide more affordable housing options.

Harrisburg, the capital of Pennsylvania, is ranked as the most affordable and livable real estate market among the 849 markets studied, with a home price-to-income ratio of 2.6. This makes homes accessible to local buyers, who may struggle to afford housing in big cities like Los Angeles or New York City, where the ratio is closer to 10 and many younger buyers are shut out of the market.

Besides the major cities, other regional hubs on the list include Rochester, New York, which has experienced an economic revival and boasts one of the lowest median home prices in the country at $129,900, and Lansing, Michigan, a state capital with affordable homes and numerous job prospects in government, education, and manufacturing.

Realtor.com analyzed cities with a population of at least 5,000 residents and 500 homes for sale, using data from December 2023 to November 2024. Home prices and inventory were obtained from Realtor.com, while location factors like amenities were evaluated with Local Logic data. Population, income, and commute times were based on Claritas estimates, and unemployment projections were forecasted using Moody's Analytics.

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