These Are the 10 Best U.S. Cities for First-time Homebuyers in 2026

Becoming a first-time homebuyer in this economy can feel wildly out of reach, but as a new report by Neighbors Bank shows, it is still possible. So long as you pick the right place to buy. 

In January, the bank released its list of the best U.S. cities for first-time homebuyers in 2026, which showcased the 10 U.S. markets where buyers can find “affordable monthly payments, stable jobs, and a high quality of life.” 

To create the list, the team first developed a seed list of cities with populations over 115,000 where total monthly housing costs stay at or below 35 percent of the median household income. The team then included and weighed quality-of-life measures like crime and employment rates, commute times, childcare costs, home appreciation, and entertainment options.

“Affordability was an important factor, but it wasn’t the only thing we looked at,” Jake Vehige, president of mortgage lending at Neighbors Bank, shared in a statement provided to Travel + Leisure. “We focused on places where first-time buyers can afford a home and enjoy a strong quality of life that includes entertainment, reasonable commutes, and everyday conveniences. This is proof that you don’t have to live in a major coastal metro to live well in 2026.”

After doing all that research, the team found that Peoria, Illinois, is the top spot for those hoping to buy their first home. 

“Set along the Illinois River, Peoria tops the list by pairing some of the lowest housing and living costs with the strongest overall quality-of-life score,” the team wrote about the winning spot, where the median home price sits at just under $162,000. This means the median monthly housing cost is just $1,492 a month. “Residents enjoy riverfront attractions like the Peoria Riverfront Museum, lively festivals, and an expanding network of trails and parks, offering plenty of recreation and community engagement.”

The findings noted that home values here have risen but remain under their “affordable” threshold, “giving first-time buyers a realistic path into the market without intense competition.” That, and the city has short commutes, accessible childcare, and a healthcare-driven job market thanks to major employers like OSF HealthCare and UnityPoint Health. 

Coming in second is Fort Wayne, Indiana, where the median home price is $246,963, making the median monthly housing cost sit at $1,880. “Fort Wayne blends Midwest affordability with a revitalized downtown, expanding trail systems, and a growing arts and cultural scene,” the findings state. “Residents enjoy attractions like the Fort Wayne Museum of Art, the Botanical Conservatory, and a thriving local music and festival calendar.” The team did note that the housing cost here pushes the upper end of the affordability range; however, its strong job market and low childcare costs keep it as a strong contender. 

Other cities to make the top of the list include Pittsburgh in third, followed by
South Bend, Indiana; Davenport, Iowa; Rockford, Illinois; Wichita, Kansas; Toledo, Ohio; Lansing, Michigan; and Wichita Falls, Texas, rounding out the top 10.

“These markets may not be on everyone’s radar, but they give first-time buyers a real chance to build equity and financial stability,” Vehige said. “For most looking to enter the housing market, that’s more important than chasing the next hot spot.”