This Florida city is the best place for first-time homebuyers. Here’s why

On Tuesday, WalletHub released its ranking of the best and worst cities for first-time homebuyers in the U.S.

The study examined factors like affordability, real estate markets, and quality of life to determine the best areas in the nation.

“Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years,” WalletHub analyst Chip Lupo explained. “The best cities for first-time home buyers not only are affordable both in terms of buying a house and living there afterward, but they also have a lot of housing choices, as well as low crime rates and good schools.”

After putting together the research, the data reveals that the No. 1 spot is in Central Florida: Palm Bay.

While affordability was lacking, the Brevard County city received high marks for its school system, real estate market and quality of life.

“Palm Bay, FL, is the best city for first-time home buyers. It’s among the leading cities in the country when it comes to active home listings per capita and new building permits per capita, so there are plenty of older and brand-new homes to choose from. In addition, while it’s a stereotype that millennials struggle to buy homes, Palm Bay has the fifth-highest millennial home-ownership rate.

Palm Bay residents can also look forward to their homes growing in value, as the city has the third-highest home appreciation rate in the country. Homes in the city were worth 108% more in 2023 than they were in 2017.

It’s also worth noting that Palm Bay has a pretty decent school system, too, for those who have or want children.

Palm Bay also isn’t the only Florida city that’s great for first-time home buyers – six of the top 10 cities are in Florida, including two of the top three."

WalletHub, "Best & Worst Cities for First-Time Home Buyers"

But that’s not all.

When breaking down the data in terms of big cites alone, the top pick actually turned out to be Tampa, followed close behind by Orlando at No. 2.

Similarly to Palm Bay, the two cities lagged in affordability, though they excelled in nearly every other category.

“(Tampa) stands out for having a large number of new building permits and active home listings per capita,” the study reads. “Tampa also has the 13th-most real estate agents per capita, highlighting the city’s highly competitive and active housing market.”

Meanwhile, the top 50 cities included in WalletHub’s list are as follows: