First-Time Homebuyers: The Top Markets to Target in 2026

Forget the traditional 30-year mortgage grind. The 2026 housing market isn't about waiting—it's about finding the digital keys to your future.

The New Down Payment: Digital Assets

Savvy first-timers are leveraging crypto gains to leapfrog years of savings. Markets with proptech adoption are seeing a surge in blockchain-verified transactions, cutting out weeks of paperwork and bypassing legacy banking delays. It’s not just about location anymore; it’s about transaction velocity.

Markets Built on Code, Not Just Concrete

Look for cities where local governance embraces digital asset frameworks. These hubs offer streamlined processes for converting crypto holdings into qualifying funds—turning yesterday's volatility into today's closing costs. Some lenders there even accept tokenized assets as collateral, a move that would give a traditional underwriter a heart attack.

The Cynical Realist's Take

Of course, this all assumes your portfolio outperforms the market's inevitable correction—because nothing says 'stable investment' like using internet money to buy a physical asset during a speculative cycle. But for those who timed it right, the 2026 door is wide open.

Key Takeaways

• Rochester, N.Y., Harrisburg, Pa., and Granite City, Ill. are the top housing markets for first-time homebuyers in 2026, according to a Realtor.com study.
• The study looked not only at housing prices, but also local inventory levels and economic outlooks.
• Amenities were also factored in, including conveniences like restaurants, day cares, shopping and commute times.

First-time homebuyers in 2026 will continue to face a tough housing market thanks to sky-high housing prices and elevated mortgage rates.

However, there are some areas where conditions are expected to be more favorable for first-time homebuyers, according to a new report from Realtor.com.

Places like Rochester, N.Y., Harrisburg, Pa., and Granite City, Ill. should offer a mix of affordability, abundant inventory, local amenities and solid economic outlooks that present attractive buying opportunities for first-time homebuyers, according to the report.

Why This is Important for You

Markets that are affordable for first-time buyers can influence local economic growth, migration patterns, and future consumer spending by giving younger households a realistic entry point into the housing market.

“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,” said Danielle Hale, chief economist at Realtor.com, in a prepared statement. 

Few Markets Are Affordable

To determine the 10 best markets for first-time homebuyers, the Realtor.com study looked at places where housing WOULD be affordable for 25- to 34-year-old buyers with median earnings. These homes can be financed with payments that are less than 30% of the median income, assuming a 6.25% fixed rate for a 30-year mortgage and a 10% down payment. Only a little more than a third of U.S. housing markets meet these affordability conditions. 

As price pressures have mounted, recent data have shown that first-time homebuyers are getting older. A National Association of Realtors study found that in 2025, the median age for first-time homebuyers was 40—the highest since the group started tracking the data in 1981. Additionally, the homeownership rate for those aged 35 and younger was 37.5% in the third quarter of 2025, down from the pre-pandemic levels of more than 40%. 

Home Prices Well Below National Levels

Other cities on the list include Birmingham, Ala., North Little Rock, Ark., Syracuse, N.Y., Baltimore, Md., St Louis Park, Minn., Pittsburgh, Pa. and Garfield Heights, Ohio. Four of the cities featured in Realtor.com’s report were also made the cut last year (Rochester, Harrisburg, North Little Rock and Baltimore). 

Several of these markets have median home listing prices that are well below the National Association of Realtors’ November median existing home sales price of $409,000. For instance, the median home price in Granite City was $119,000, while in Rochester it was $139,900, and in Harrisburg, the median home listing price was $151,999. 

Meanwhile, several Florida markets fell off the list. And for the second straight year, no cities in the West made the list, highlighting the affordability challenges in those areas. 

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“Truly affordable markets have become harder to find, especially for younger households,” said Joel Berner, Realtor.com senior economist. “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.”

How Amenities Factor Into Affordability

While affordability was a key metric, the study also closely looked at amenities, such as nearby shopping, day care, restaurants, grocery stores and nightlife. Since commute times were another factor the study examined, many of the highlighted markets are the principal city in their metropolitan area, with St. Louis, Mo. suburb Granite City and Minneapolis suburb St. Louis Park being notable exceptions.

“For first-time buyers, that combination can mean a more manageable path to homeownership,” Hale said. “All without giving up the neighborhood features that make a place feel like home.”