First-time home buyers are still navigating a challenging housing market, but in some parts of the country, homeownership is easier to achieve. A new Zillow® analysis identifies the markets where affordability, inventory and competition align to give first-time buyers their best opportunity in 2026.
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Jacksonville ranks as the top market for first-time buyers this year, followed by Birmingham, San Antonio, Atlanta and Houston. These markets offer a more workable balance of lower rent burdens, more homes within budget and less anticipated competition from other first-time buyers.
Zillow’s best housing markets for first-time home buyers in 2026:
- Jacksonville
- Birmingham
- San Antonio
- Atlanta
- Houston
- St. Louis
- Detroit
- Raleigh
- Baltimore
- Louisville
“First-time buyers are finally seeing some light at the end of the tunnel,” said Orphe Divounguy, senior economist at Zillow. “Affordability is still a challenge, but rising incomes, stabilizing prices and improving inventory are creating real opportunities in parts of the country. In the strongest markets for first-time buyers, they’ll find more choices, less competition and a clearer path to homeownership than they’ve had in years.”
Even in the most favorable markets, challenges remain. Rising mortgage rates have eaten into affordability gains, and inventory remains 20% below pre-pandemic norms. However, broadly speaking, first-time buyers are in a better place than last year. Affordability has still improved from a year ago — just to a lesser degree — and that inventory deficit is much narrower than it was a few years ago.
Conditions vary widely across the country. In many large coastal metros, high home prices and rents continue to make it difficult for renters to save for a down payment, while limited affordable inventory keeps competition relatively strong. In contrast, many markets in the South and Midwest offer a more favorable combination of affordability and availability.
Sun Belt markets make up the majority of the list in large part because inventory there has recovered more quickly, providing more options and easing competition for home shoppers. Midwestern markets continue to stand out for relative affordability, allowing first-time buyers to more easily compete with deeper-pocketed repeat buyers.
Zillow previously ranked this year’s most buyer-friendly markets, led by Indianapolis. While that analysis identifies where market conditions are tilted in favor of buyers overall, this list focuses on access for first-time buyers, starting with rent burdens that make it easier to save for a down payment.
Tips for buyers:
- Buyers in a top market should take advantage of their negotiating power. More homes within reach and less competition can create more room to negotiate on price and terms. A great agent can help spot opportunities and negotiate effectively.
- In tougher markets, flexibility is key. Broadening a search or adjusting expectations can help unlock more options.
Tips for sellers:
- Price with today’s buyers in mind. Affordability is still a constraint, especially for first-time buyers, so realistic pricing can help attract stronger interest.
- Use early buyer signals to your advantage. Zillow Preview℠ allows sellers to gauge demand through saves, shares and tour requests before their listing officially hits the market, helping refine pricing and marketing strategy.
Best housing markets for first-time buyers
| Metropolitan Area | Rent Burden: Share of Median Household Income Spent on Typical Rent | Affordable Listings for Median-Income Household (February 2026)* | Affordable Listings Per 100 Renter Households | Share of Population Ages 29–43 |
| Jacksonville, FL | 23.1 % | 47.8 % | 5.9 | 36.3 % |
| Birmingham, AL | 21.1 % | 55.6 % | 6.2 | 32.9 % |
| San Antonio, TX | 20.2 % | 47.4 % | 4.5 | 36.4 % |
| Atlanta, GA | 22.3 % | 45.2 % | 4.3 | 37.4 % |
| Houston, TX | 22.7 % | 40.2 % | 3.1 | 39.7 % |
| St. Louis, MO | 19.5 % | 67.7 % | 3.6 | 33.3 % |
| Detroit, MI | 21.8 % | 64.8 % | 4.2 | 32.8 % |
| Raleigh, NC | 18.4 % | 48.0 % | 2.7 | 35.9 % |
| Baltimore, MD | 21.5 % | 61.8 % | 3.0 | 34.5 % |
| Louisville, KY | 20.9 % | 54.1 % | 3.8 | 33.8 % |
| Indianapolis, IN | 21.3 % | 57.6 % | 3.7 | 33.4 % |
| Austin, TX | 17.9 % | 30.4 % | 1.9 | 39.1 % |
| Washington, DC | 21.1 % | 49.2 % | 1.8 | 37.6 % |
| Denver, CO | 19.4 % | 33.2 % | 2.1 | 38.8 % |
| Charlotte, NC | 22.6 % | 41.0 % | 3.0 | 37.4 % |
| Dallas, TX | 19.9 % | 38.2 % | 2.6 | 36.9 % |
| Memphis, TN | 23.8 % | 46.4 % | 3.3 | 35.9 % |
| Orlando, FL | 27.0 % | 29.0 % | 2.7 | 39.8 % |
| Philadelphia, PA | 23.3 % | 53.9 % | 2.1 | 35.3 % |
| Phoenix, AZ | 21.8 % | 33.0 % | 3.6 | 35.2 % |
| Pittsburgh, PA | 21.1 % | 62.9 % | 4.1 | 29.4 % |
| Kansas City, MO | 20.1 % | 56.1 % | 3.2 | 31.6 % |
| Minneapolis, MN | 19.4 % | 53.7 % | 3.1 | 31.5 % |
| Cincinnati, OH | 21.5 % | 60.8 % | 3.2 | 31.2 % |
| Tampa, FL | 28.6 % | 32.4 % | 4.5 | 36.3 % |
| Salt Lake City, UT | 18.1 % | 29.8 % | 1.6 | 37.1 % |
| Seattle, WA | 22.1 % | 21.5 % | 0.6 | 41.3 % |
| Columbus, OH | 20.3 % | 47.7 % | 1.8 | 34.3 % |
| Buffalo, NY | 21.6 % | 70.9 % | 1.7 | 31.2 % |
| Oklahoma City, OK | 21.1 % | 40.3 % | 4.3 | 31.1 % |
| Virginia Beach, VA | 24.6 % | 39.9 % | 2.5 | 34.6 % |
| San Jose, CA | 23.2 % | 14.0 % | 0.2 | 41.7 % |
| Portland, OR | 20.4 % | 24.9 % | 1.1 | 37.1 % |
| Cleveland, OH | 22.6 % | 55.6 % | 2.8 | 30.4 % |
| Chicago, IL | 26.8 % | 43.5 % | 1.7 | 35.9 % |
| Las Vegas, NV | 24.5 % | 28.0 % | 2.5 | 35.8 % |
| Richmond, VA | 22.8 % | 38.4 % | 1.4 | 35.3 % |
| Nashville, TN | 22.8 % | 29.0 % | 2.3 | 34.6 % |
| Milwaukee, WI | 21.8 % | 50.3 % | 1.8 | 31.8 % |
| Miami, FL | 37.3 % | 29.6 % | 5.0 | 34.4 % |
| San Francisco, CA | 25.9 % | 20.1 % | 0.4 | 38.4 % |
| New Orleans, LA | 28.8 % | 22.9 % | 2.2 | 35.7 % |
| Riverside, CA | 30.9 % | 16.6 % | 1.3 | 38.2 % |
| Sacramento, CA | 25.4 % | 17.0 % | 0.7 | 35.8 % |
| San Diego, CA | 29.8 % | 11.3 % | 0.3 | 39.1 % |
| Hartford, CT | 22.8 % | 42.0 % | 1.1 | 30.0 % |
| Boston, MA | 29.7 % | 19.5 % | 0.5 | 34.5 % |
| Los Angeles, CA | 33.9 % | 5.6 % | 0.1 | 36.3 % |
| Providence, RI | 29.1 % | 11.6 % | 0.3 | 31.6 % |
| New York, NY | 37.1 % | 16.3 % | 0.5 | 33.3 % |
Methodology
Zillow’s ranking evaluates conditions in the 50 largest U.S. metro areas using four measures that signal whether a market is accessible to first-time buyers:
- Rent affordability, measured as the share of median household income spent on typical rent.
- The share of for-sale listings affordable to a median-income household.
- The number of affordable listings relative to the number of renter households, a proxy for expected competition.
- The share of households headed by people ages 29–43, a key home-buying cohort, to measure a market’s appeal to buyers looking to build a community among their peers.
