Realtor.com released its 2026 ranking of the best markets for first-time homebuyers on Wednesday, revealing a list dominated by cities in the eastern United States, with Rochester, N.Y., claiming the top spot.
The report highlights that while affordability remains a major hurdle nationally, specific markets like Rochester, Harrisburg, Pa., and Granite City, Ill., offer a rare combination of attainable home prices, solid economic forecasts and desirable local amenities.
Notably, for the second consecutive year, no markets in the western U.S. appeared in the top 10, as high prices continue to outpace local incomes in that half of the country.
Affordability in the East
Realtor.com notes that its top picks offer “a mix of affordability, abundant for-sale inventory, local amenities and solid metro-level housing forecasts and economic outlooks.”
The 2026 rankings underscore a distinct geographic shift for budget-conscious buyers. Nine of the top 10 markets are located in the eastern half of the country, though largely away from expensive coastal areas. Rochester, ranked first, boasts a median listing price of just $139,900. Harrisburg follows in second place with a median price of $151,999, while Granite City ranks third, offering the lowest median price on the list at $119,000.
According to Realtor.com, these markets stand out because they remain financially viable for young buyers. In all 10 featured markets, a median-income buyer aged 25 to 34 would spend less than 30% of their income on housing costs — assuming a 10% downpayment and a 6.25% mortgage rate. Nationally, only 35.2% of markets evaluated met this affordability benchmark.
“The markets that rise to the top in 2026 pair comparatively attainable forecasted home prices with strong local amenities and a supportive economic backdrop,” said Realtor.com Chief Economist Danielle Hale in a press release. “For first-time buyers, that combination can mean a more manageable path to homeownership.”
The top 10 markets
Realtor.com’s full list of top markets for first-time homebuyers in 2026 includes:
- Rochester, N.Y.
- Harrisburg, Pa.
- Granite City, Ill.
- Birmingham, Ala.
- North Little Rock, Ark.
- Syracuse, N.Y.
- Baltimore, Md.
- St. Louis Park, Minn.
- Pittsburgh, Pa.
- Garfield Heights, Ohio
Six of these locations are principal cities within their metro areas, challenging the assumption that first-time buyers must retreat to distant suburbs to find affordability. Realtor.com noted that these centrally located markets offer “everyday convenience” such as shorter commutes and access to nightlife and shopping without the steep price tag often associated with urban living.
Strategic advice for buyers
While the list highlights specific geographies, Joel Berner, senior economist at Realtor.com, said in a statement provided to Scotsman Guide that the rankings should be viewed as a roadmap for strategy rather than just a reflection of current sales volume.
“This report isn’t so much a measure of what IS happening with first-time homebuyers as it is a suggestion for what they SHOULD do,” Berner said. “The reality is that most people can’t uproot their lives and move across the country to buy a home (though there is some of this that happens), but the themes of this report are universally applicable. Specifically, targeting central cities or metro areas may be a strategy that works for FTHBs across the country.”
Berner also addressed the notable absence of western markets, suggesting that for potential first-time homebuyers (FTHB) in expensive regions, patience might be the wisest financial move.
“Right now it’s tough to be a FTHB out West, as the desirable markets tend to be very unaffordable,” Berner told Scotsman Guide. “We are seeing that many would-be FTHBs are deciding to remain renters, and with the softness in rent levels in the West, it’s completely reasonable for them to do so.”
National headwinds persist
The report comes at a challenging time for U.S. homebuyers. Realtor.com data indicates that the typical household now needs seven years to save for a downpayment, roughly double the time required before the COVID-19 pandemic. Such a negative finding is not an exception; it is the norm.
“Truly affordable markets have become harder to find, especially for younger households,” said Berner in a press release accompanying the report. “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.”
The rankings were determined by analyzing inventory levels, commute times, amenity scores from location intelligence company Local Logic, and affordability metrics based on listings from December 2024 through November 2025.
