Report: Best and worst cities for first-time home buyers

Report: Best and worst cities for first-time home buyers

MEMPHIS, TN (WMC) - With July being one of the top months for home sales, and more than a third of all home buyers also being first-timers, the personal-finance website WalletHub took an in-depth look at 2017's best & worst places for first-time home buyers.  As might be expected, several California cities populate the "worst" section, while Texas made a strong showing in the "best" category.

Local first-time buyers wishing to stay in the general Mid-South area should consider Murfreesboro, TN – it ranked #10 overall in the country.

To determine the most favorable housing markets for first-time buyers, WalletHub's analysts took the pulse of real estate in 300 cities of varying sizes using 23 key metrics. The data set ranges from housing affordability to real-estate tax rate to property-crime rate.

10 Best Places for First-Time Home Buyers

  1. McKinney, TX
  2. Frisco, TX
  3. Allen, TX
  4. Cary, NC
  5. Norman, OK
  6. Lincoln, NE
  7. Richardson, TX
  8. Boise, ID
  9. Thornton, CO
  10. Murfreesboro, TN

10 Worst Places for First-Time Home Buyers

  1. Santa Barbara, CA
  2. Berkeley, CA
  3. Oakland, CA
  4. Santa Monica, CA
  5. Miami Beach, FL
  6. San Francisco, CA
  7. Newark, NJ
  8. San Mateo, CA
  9. New York, NY
  10. El Monte, CA

Best vs. Worst

Fayetteville, North Carolina, has the most affordable housing (median house price divided by median annual household income), with a ratio of 1.24, which is 12.7 times cheaper than in Santa Barbara, California, the city with the least affordable, with a ratio of 15.74.

Detroit has the highest rent-to-price ratio, 24.8 percent, which is 7.3 times higher than in Sunnyvale, California, the city with the lowest at 3.4 percent.

Laredo, Texas, has the lowest cost-of-living index, 77, which is 2.9 times lower than in Santa Clara, San Jose, and Sunnyvale, California, the cities with the highest at 223.

Colorado Springs, Colorado, has the lowest average energy cost per household, $120.34, which is 3.8 times lower than in Honolulu, the city with the highest at $455.51.

Click here to view the full report and your city's rank.

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