Buying your first home in 2025 can feel overwhelming with high mortgage rates and limited inventory. But some markets still offer affordability, growth potential, and economic stability.
Here are the top 5 U.S. markets for first-time homebuyers:
- Harrisburg, PA: Median price $131,100, 69% below the national average, with steady job opportunities and a low cost of living.
- Rochester, NY: Median price $152,000, strong demand with homes selling in 17 days, and a growing economy.
- Villas, FL: Median price $236,950, slower market pace with 80% of homes selling below asking price, and a 9.6% price growth forecast.
- Lansing, MI: Median price $139,950, affordable housing and down payment assistance programs available.
- Wilmington, DE: Median price $245,000, thriving financial sector, and financial assistance for first-time buyers.
Quick Comparison
| Market | Median Price | % Below National Median | Monthly Payment % of Income | Growth Forecast |
|---|---|---|---|---|
| Harrisburg, PA | $131,100 | 69% | 17.5% | Above average |
| Rochester, NY | $152,000 | 64% | 15.2% | Above average |
| Villas, FL | $236,950 | 41% | 24.8% | 9.6% |
| Lansing, MI | $139,950 | 68% | 16.8% | Above average |
| Wilmington, DE | $245,000 | 42% | 22.4% | Above average |
These markets balance affordability and long-term potential, making them excellent options for first-time buyers. Start exploring these areas to find the right home for your budget and lifestyle.
States THAT WILL Start To Become Affordable In These …
1. Harrisburg, PA
Harrisburg, PA stands out for its affordable housing and urban perks. As of February 2025, the median sale price in Harrisburg is $131,100 – about 69% lower than the national average [1]. This makes it an appealing option for buyers looking to enter the market without breaking the bank.
With a cost of living index of 88.1 [3], residents can save money while building equity in their homes. But Harrisburg offers more than just affordability; it boasts several other advantages that make it a great place to live.
- Economic Stability: As Pennsylvania’s capital, Harrisburg benefits from a steady government job market and a variety of economic opportunities [2]. Local organizations like the Harrisburg Regional Chamber and CREDC also support business growth and strengthen the region’s economy.
- Convenient Location: Situated in South Central Pennsylvania, Harrisburg offers an average commute time of just 28 minutes [3]. It provides easy access to major cities while remaining budget-friendly.
- Local Attractions: First-time buyers can enjoy a range of activities, from visiting the National Civil War Museum and the Whitaker Center for Science & Arts to strolling through riverfront parks along the Susquehanna. The city also hosts popular events like the Harrisburg Wine and Food Festival [3].
Harrisburg even earned the #35 spot on U.S. News & World Report’s Best Places to Live list [3], showcasing its appeal and quality of life. Covering areas like Cumberland, Dauphin, and Perry counties, the region offers options for a variety of lifestyles.
With its affordable home prices, steady economy, and rich amenities, Harrisburg is an excellent choice for first-time buyers.
2. Rochester, NY
Rochester is an attractive option for first-time homebuyers. In February 2025, the median home sale price was $152,000 – 64% lower than the national average – and home values saw a 26.7% rise compared to the previous year. Homes in the area typically sell within just 17 days, reflecting strong demand [4].
As New York State’s third-largest metropolitan area [5], Rochester has a rich history tied to major companies like Eastman Kodak, Bausch & Lomb, and Xerox [5]. Over time, the city has shifted away from its industrial roots, developing a more varied economy that helps maintain property values.
With its affordable home prices, quick sales, and growing economy, Rochester offers a great opportunity for first-time buyers. It’s a place where you can start building equity while enjoying a thriving and welcoming community.
3. Villas, FL
Villas, FL presents a great opportunity for first-time homebuyers. As of March 2025, the median sold price in Villas was $270,000 – a small 0.4% drop from the previous year. About 80% of homes sold below their asking price, with properties staying on the market for an average of 75 days [6]. This slower pace gives buyers more time to make informed decisions.
Current listing prices in Villas make it even more appealing. The average listing price is $236,950, well below the national median of $416,880 [7]. Here’s a snapshot of pricing trends by property type:
| Property Type | Current Price | YoY Change |
|---|---|---|
| 2 Bedrooms | $210,000 | -9.6% |
| 3 Bedrooms | $380,000 | -5.8% |
| 4 Bedrooms | $470,000 | -16.1% |
Looking ahead, Villas is expected to see home prices increase by 9.6%, much higher than the national forecast of 3.7% [7]. The area also scores an 8.0 on the first-time homebuyer location scale, has an average commute time of 26 minutes, a price-to-income ratio of 3.4, and 85.6 homes per 1,000 households [7].
Nearby neighborhoods add more options for buyers. For instance, Page Park/Page Field offers homes around $223,200, while Heritage Palms features higher-end properties averaging $409,000 [6]. This variety makes Villas a well-rounded choice for different budgets.
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4. Lansing, MI
Lansing, Michigan’s capital, stands out as a great option for first-time homebuyers. As of February 2025, the median sale price here is $139,950 – an impressive 68% below the national average [8]. Over the past year, home prices in Lansing have risen by 7.2%, with a median price per square foot of $115 [8].
First-time buyers can also benefit from several down payment assistance programs in Lansing:
| Program | Assistance Amount | Key Requirements |
|---|---|---|
| City of Lansing Down Payment Assistance | Up to $14,999 | First-time buyer, income limits, $1,000 minimum investment [10] |
| Ingham County DPA | Up to $30,000 | Income ≤80% AMI, zero-interest loan, forgivable after 7 years [12] |
| MSHDA First-Generation DPA | $25,000 | First-generation buyer, credit score ≥640, max price $224,500 [11] |
The housing market here remains buyer-friendly, with homes staying on the market for an average of 63 days [8]. Lansing’s cost of living is also 9% below the national average, making day-to-day expenses more manageable [8].
"Homeownership is an important pathway to economic vitality and mobility for our state and its residents, but too many first-time buyers face financial barriers that put it out of reach", says Amy Hovey, Chief Executive Officer and Executive Director of MSHDA [11].
Lansing offers more than just affordable housing. The city features a 13-mile River Trail connecting neighborhoods to downtown, along with career opportunities in government, healthcare, insurance, and tech [13]. Compared to nearby areas like East Lansing ($302,400) and DeWitt Charter Township ($351,500), Lansing remains much more affordable [9].
For those looking for nearby options, Lansing Charter Township offers homes averaging $155,972 as of March 2025 [9], providing a range of choices to fit different budgets and preferences.
5. Wilmington, DE
Wilmington, the largest city in Delaware, stands out for first-time buyers with its affordable home prices and thriving financial sector. As of February 2025, the median sale price is $245,000 – about 42% below the national average [14]. Home prices have also risen by 36.1% compared to February 2024, signaling strong growth [14].
Homes in Wilmington typically sell within 38 days and receive around four offers on average [14]. The city’s role as a financial hub, hosting several banks and credit card companies, adds to its appeal [15].
First-time buyers can benefit from the City of Wilmington’s First Start Homebuyer Program, which provides financial assistance for purchasing a home:
| Program Feature | Details |
|---|---|
| Maximum Assistance | Lesser of $15,000 or 6% of purchase price [16] |
| Buyer Contribution | Minimum $1,000 required [16] |
| Property Requirements | Single-family homes within city limits [16] |
| Usage | Down payment and closing costs [16] |
Eligibility for this program depends on income limits, which vary by funding source and household size. For instance, a family of four may qualify with an income up to:
- $114,700 under 100% AMI guidelines
- $91,750 under 80% AMI guidelines [16]
Wilmington also offers a range of lifestyle perks. The revitalized Riverfront District features plenty of entertainment and dining options, while its proximity to Philadelphia expands cultural and economic opportunities [15]. Historical landmarks like the Old Swedes Church and the Hagley Museum add to its charm [15].
The city’s market stability is evident – 75% of homebuyers in Wilmington choose to stay within the metropolitan area, reflecting strong community ties [14]. While the overall cost of living is about 4% above the national average, lower housing prices make this historic East Coast city an attractive choice for first-time buyers [14].
Next, see how Wilmington’s market compares to other leading markets.
Market Data Comparison
Let’s break down key metrics for five markets to help you make informed buying decisions.
Here’s a detailed look at median listing prices from November 2023 to November 2024:
| Market | Median Listing Price | % Below National Median* | Monthly Payment % of Income** |
|---|---|---|---|
| Rochester, NY | $129,900 | 67.7% | 15.2% |
| Lansing, MI | $135,000 | 66.5% | 16.8% |
| Harrisburg, PA | $140,000 | 65.2% | 17.5% |
| Wilmington, DE | $222,000 | 44.8% | 22.4% |
| Villas, FL | $236,950 | 41.1% | 24.8% |
*National median: $402,502 as of December 2024
**Based on typical home purchase [17]
What Makes These Markets Stand Out?
These markets are appealing due to their affordability, offering first-time buyers a chance to enter the housing market without overstretching their budgets. Danielle Hale, chief economist at Realtor.com, explains:
"The places highlighted offer opportunities for first timers in terms of the cost of housing, availability of homes for sale and the quality of location" [17]
Key Highlights by Market:
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Rochester, NY: With the lowest median price in this group, Rochester offers budget-friendly options in a mid-sized city. Joel Berner, Senior Economist at Realtor.com, notes:
"Western New York is a stronghold for affordable markets that offer perks of living in small to mid-size cities" [17]
-
Harrisburg, PA: This market stands out as a cost-effective alternative to larger Pennsylvania cities. Local real estate broker Joy Daniels shares:
"Compared with home prices in bigger cities in Pennsylvania…Harrisburg offers affordable pricing. The cost of living is lower, so you can afford a bigger home in maybe a better location" [17]
-
Villas, FL: While it has the highest median price here, Villas benefits from active new construction, keeping supply high and prices competitive. Berner adds:
"Florida is a major focus of new-construction activity, which keeps the supply of homes for sale high and prices relatively low" [17]
Budget Flexibility
One standout feature across these markets is the percentage of income spent on monthly payments, ranging from 15.2% to 24.8%. This is well below the recommended 30%, leaving buyers with more financial breathing room [17].
Economic Strength
These markets also benefit from solid economic conditions, with strong job opportunities and growing local economies. This combination of affordability and economic stability makes them attractive for first-time buyers aiming to balance financial and lifestyle goals.
This comparison sets the stage for actionable steps to help you secure the right home in the right market.
Next Steps
All five markets are projected to grow faster than the 3.7% national average [7]. Using this information, here’s how you can take the next steps to secure your home.
Evaluate Your Priorities
Take a closer look at these key factors:
Housing Availability: Villas leads the way with 85.6 homes per 1,000 households, followed by Lansing (42.3) and Wilmington (41.3) [7].
Future Growth Potential: Each market offers promising fundamentals:
| Market | Price to Income Ratio | First-Time Buyer Score | Young Homeowner Share* |
|---|---|---|---|
| Wilmington, DE | 4.1 | 9.7 | 18.4% |
| Harrisburg, PA | 2.6 | 9.2 | 20.6% |
| Rochester, NY | 2.5 | 9.2 | 22.3% |
| Lansing, MI | 2.6 | 6.8 | 21.4% |
| Villas, FL | 3.4 | 8.0 | 14.1% |
*Projected share of 25-34 year-old homeowners within households [7]
Once you’ve identified what matters most, it’s time to focus on financial preparation.
Financial Preparation
Set yourself up for success by:
- Getting pre-approved for a mortgage
- Exploring local assistance programs
- Consulting with local experts
Danielle Hale, Chief Economist at Realtor.com®, offers this insight:
"Choosing the best place will come down to what’s most important to each buyer and their family, and our list of places, and their qualities, is a good guide" [7].
Timing matters – take action now to secure the best opportunities.
