10 Best (and Worst) Cities for Home Ownership

When you’re trying to buy a house, there’s one thing that matters almost more than anything: location. Where you live affects how much you’ll pay, what kind of home you can find, and how easy it is to become a first-time homeowner. 

That’s why we rounded up the 10 best - and 10 worst - cities to become a homeowner.  

The city of Hot Springs, Arkansas was named for the natural hot springs that are still found in the area. But now it’s also known for its incredible home affordability. Starter homes comprise about 84% of all housing stock, and the median home price is only $223,056. 

Located close to the Indiana-Illinois border, Terre Haute is a city designed for individuals or couples looking to become homeowners. The average median price for a starter home in Terre Haute is just $140,613, far below the national average. Plus, the average homeowner will only have to spend 28% of their income on their mortgage. 

Lake Charles is only the fifth-largest city in Louisiana, but what it lacks in size it more than makes up for in home affordability. The average median price for a home is $181,817, not bad if you’re looking for a home on a budget. Plus, the average mortgage payment-to-income ratio is about 36%. 

If you’re worried about negotiating a good home price, then Cape Coral and Fort Myers might be perfect for you. They have more than six months of housing supply, meaning you can afford to wait for the ideal home. Plus, more than 80% of the housing supply is starter homes.  

Vero Beach is known as a hot spot for beach lovers. And the best part? You don’t have to pay an arm and a leg to live there. There’s a six-month supply of houses, so you’ll have the upper hand in negotiations.  

Enid only has about 50,000 people, but it’s one of the best cities in the country for those looking to buy a home. The median cost for a starter home in Enid is just $125,117. The best part? Average home payments only equal about 22% of a resident’s income.  

In Homosassa Springs, the median home price is $267,846, which is much lower than what you’d find in other parts of Florida. The homeownership rate among those 35 and under is a whopping 65%. Almost 88% of the housing stock is starter homes, ideal for those looking for their first property. 

Most people think of the Villages solely as a retirement community, but the homes there are available for anyone. In fact, the homeownership rate among those 35 and younger is almost 69%. However, the median home price is slightly more expensive than other areas on this list, at $379,389. 

The area known as the Upper Ohio Valley is right on the border between West Virginia and Ohio. And if you haven’t heard of it, there’s a good reason to add it to your list: it’s a good place to be a homeowner. The typical starter home costs just about $118,042, and there’s more than a five-month supply of homes.  

As you can see, the state of Florida is a hotbed for potential homeowners on a tight budget. And the city of Punta Gorda is at the top of the list. The city, which is just north of Cape Coral and Fort Myers, is perfect for young homebuyers. Almost half of those under 35 years old own a home. 

If you want a house with ample access to skiing, hiking, and the great outdoors at an affordable price, stay away from Salt Lake City. It might surprise you to learn that Salt Lake City is one of the worst cities in the country for homeowners. The median home price is $545,900, with prices increasing every year.  

Seattle is well-known for being expensive, and that’s especially true for prospective homeowners. A basic starter home costs $564,450 on average, almost a 5% increase from the past year. That doesn’t even compare to the median home, which costs $875,000.  

If Florida is the state for home affordability, then California is the state for home unaffordability. The Sacramento metro area is better than many places in California, but not by much. The median home price is $480,000, still more than the national median. 

Home to Harvard University, Cambridge is a beautiful, idyllic college town. It’s also one of the worst spots if you’re a first-time homebuyer. The median home price is $1.2 million, about a 20% jump from the previous year. 

Everyone knows that San Francisco is an expensive place to buy a home. However, most don’t realize how bad it actually is for first-time homebuyers. The median sale price in 2024 was $1,342,500, with almost two-thirds of homes going for more than the list price. If you’re dreaming of living in the Bay Area, you may have to reconsider.  

While Riverside isn’t as expensive as other cities on this list, it’s still not a great place for first-time homebuyers. The median home price is $655,046, about a $35,000 increase over the past year. Unfortunately, supply also decreased, which might be partly responsible for the huge price increase. 

Want to buy a home in the Mile High City? You’ll have to shell out a lot — $67,000 to be exact. That’s the average down payment on a home in Denver. While about 60% of homes in Denver are starter homes, the average median sale price is $479,162. That’s much higher than what most first-time homebuyers can afford. 

Los Angeles has a well-earned reputation for being an expensive place to live.  

The average home price for a starter home is $645,196 - more than $200,000 more than the national average. Plus, livability in the City of Angels is only 46th in the country. 

San Diego is one of the most beautiful cities in the country, but you’ll pay a high price for those views. The average home price is $651,891, more than $200,00 more than the national average home price. The city is also 26th in the country for livability.  

When you think about the most expensive place to live, if Silicon Valley comes to mind, you wouldn’t be wrong. The average home starts at $965,068, more than double the average median home price.