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Changes in the US housing market may finally be opening the door for first-time homebuyers, as improving affordability and property growth create new opportunities in several key regions.
Jacksonville, Florida, leads the list as the best market for first-time buyers this year, followed by Birmingham, Alabama; San Antonio, Texas; Atlanta, Georgia; and Houston, Texas. Each of these cities is benefiting from a more favorable balance of home prices, available inventory and buyer competition, according to a new Zillow analysis.
Zillow’s rankings are based on several key factors, including rental burden, share of affordable inventory, renter-related inventory, and the concentration of buyers in their prime home buying years.
The top 10 markets for first-time buyers in 2026 are:
Jacksonville, Florida
Aerial view of Jacksonville, Florida, at dusk. (iStock / Stock)
Jacksonville ranks first, with rent consuming 23.1% of income. About 47.8% of listings are considered affordable, supported by strong inventory at 5.9 homes per 100 tenants.
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Birmingham, Alabama
Birmingham stands out in its affordability, with over 55.6% of homes being affordable and 6.2 listings per 100 renters.
San Antonio, Texas
With a low rental burden of 20.2% and 47.4% of listings considered affordable, San Antonio offers a balanced entry point for buyers.
Atlanta, Georgia
About 45.2% of listings are affordable in Atlanta, where moderate competition is paired with strong inventory levels.
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Houston, Texas
Skyscrapers can be seen in the city of Houston, Texas. (iStock / Stock)
Houston’s affordability rate remains at around 40.2%, supported by a large number of buyers in their prime home buying years.
Louis, Missouri
Affordability is a key strength of St. Louis, where 67.7% of listings fall within the reach of first-time buyers.
Detroit, Michigan
About 64.8% of homes in Detroit are affordable, combined with manageable competition.
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Raleigh, North Carolina
Raleigh benefits from a low rental burden of 18.4%, with approximately 48% of remaining listings affordable.
Baltimore, Maryland
The Baltimore skyline (Edwin Remsberg/VWPics/Universal Images Group via Getty Images/Getty Images)
About 61.8% of homes are affordable in Baltimore, although inventory is tight at three per 100 renters.
Louisville, Kentucky
Louisville rounds out the top ten, with 54.1% of listings considered affordable and an ongoing housing supply.
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Mortgage rates are still high, and housing inventory remains about 20% below pre-pandemic levels. Still, conditions have improved since last year, with more homes available and lower returns on purchases, according to Zillow.
“First-time buyers are finally seeing the light at the end of the tunnel,” said Orphe Divounguy, an economist at Zillow, in a statement. “Affordability remains a challenge, but rising incomes, stabilizing prices and improving inventory are creating real opportunities in parts of the country.”
