Realtor.com ranking showed where 2026’s entry‑level buyers still have options
Realtor.com’s latest ranking of the best markets for first-time homebuyers in 2026 points squarely to mid‑sized, relatively affordable cities east of the Mississippi, where prices, incomes and local amenities still lined up for younger buyers.
Rather than focusing on coastal or Western hubs, the list concentrated on what the portal described as “affordable pockets in otherwise pricier regions,” where the median listing price sat below both metro and national levels and where mortgage payments stayed within 30% of income for a typical 25‑ to 34‑year‑old at a 6.25% rate and 10% down.
Forty percent of millennial home buyers are desperate to buy a home this year, even as nearly all reported major obstacles to ownership, according to a new Clever Offers survey. Although the median US home costs $410,800, 59% of millennials plan to spend less than $400,000 on their home purchase, including 67% of first-time buyers.
“Buying your first home is one of the biggest financial and lifestyle decisions you’ll make, and where you buy can not only influence how soon you can take that step, it can shape the tradeoffs that homebuying requires,” Danielle Hale, chief economist at Realtor.com, said.
“The markets that rise to the top in 2026 pair comparatively attainable forecasted home prices with strong local amenities and a supportive economic backdrop. For first-time buyers, that combination can mean a more manageable path to homeownership. All without giving up the neighborhood features that make a place feel like home.”
Top 10 markets and what buyers pay
The top 10 places for first-timers in 2026, according to Realtor.com’s analysis of more than 10,000 Census‑designated places, are:
- Rochester, N.Y. ($139,900)
- Harrisburg, Pa. ($151,999)
- Granite City, Ill. ($119,000)
- Birmingham, Ala. ($148,950)
- North Little Rock, Ark. ($170,000)
- Syracuse, N.Y. ($169,900)
- Baltimore, Md. ($223,900)
- St. Louis Park, Minn. ($375,000)
- Pittsburgh, Pa. ($249,000)
- Garfield Heights, Ohio ($140,000)
“In each of our featured markets, the median-priced home is affordable to the median-earning young professional by the 30% rule,” the report said, noting that the share of income devoted to a payment ranged from 12.6% in Granite City to 25.4% in St. Louis Park.
By contrast, “only 35.2% of the places considered for our rankings have a price and income mix that leads to a mortgage payment that meets the 30% rule,” the analysis said, a reminder that such markets are still the exception.
Meanwhile, Youngstown, Ohio, emerged as the nation’s hottest housing market in Cotality’s latest Home Price Index, outpacing the usual coastal and Sun Belt contenders.
Why these markets mattered for lenders
“Truly affordable markets have become harder to find, especially for younger households,” Joel Berner, senior economist at Realtor.com, said.
“The places that rise to the top in this ranking are notable precisely because they still offer a viable path to ownership for first-time buyers.”
Mortgage Bankers Association chief economist Mike Fratantoni previously said he expects “in more and more markets around the country, it’s going to be a buyer’s market as opposed to a seller’s market,” with affordability “getting a little bit brighter” as supply improves and rates ease.
Yet a Bankrate survey showed US home affordability is at its worst level in decades, with one in six home shoppers over the past five years abandoning purchases altogether because nothing fit their budgets.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
