The real estate market is a tough one for first-time home buyers, but a new study finds there are still areas of the nation that remain viable for new home seekers.
The study by personal finance website WalletHub looked at 300 cities, comparing them using 22 factors, such as cost of living, real estate taxes and the local crime rate.
"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report said. "Last year, first-time buyers made up just 32% of the market, compared to the historical average of 40%."
The study broadly looked at each city's affordability, the health of its real estate market and its quality of life, including the weather, the quality of its school system and energy costs.
"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,” WalletHub analyst Cassandra Happe said in the report.
The following, in ascending order, are WalletHub's best cities for first-time home buyers:
10. Henderson, Nev.
The city had the 20th best real estate market and ranked 36th in affordability.
9. Gilbert, Ariz.
This city ranked 27th for its real estate market and 32nd for affordability.
8. Boise, Idaho
Boise had the nation's third-highest median home-price appreciation.
7. Lakeland, Fla.
Lakeland ranked ninth in the nation for quality of life and 16th for real estate.
6. Surprise, Ariz.
This city ranked fourth in the nation for real estate.
5. Orlando, Fla.
The home to Disney World ranked fifth for real estate and 14th for quality of life.
4. Tampa, Fla.
Tampa ranked first for quality of life and sixth for real estate.
3. Port St. Lucie, Fla.
The city has the second-highest millennial homeownership rate in the country, at 64%. "It has the second-lowest property crime rate and the 12th-lowest violent crime rate in the country," the report said. "And when it comes to education, it ties Cape Coral for the 9th-best school system."
2. Cape Coral, Fla.
In addition to a high number of active home listings and new building permits per capita, the city has the most real-estate agents per capita. "In addition, Cape Coral is a good place to live because it has a low crime rate," the report said. "It has the 16th-lowest violent crime rate and 12th-lowest property crime rate in the country out of the 300 cities in this study."
1. Palm Bay, Fla.
The city is tops in the nation in active home listings per capita and new building permits per capita, which contributes to housing inventory. "In addition, while it’s a stereotype that millennials struggle to buy homes, Palm Bay has the third-highest millennial homeownership rate," the report said.
The full report can be viewed here.
