The 10 most affordable, up-and-coming cities for first-time homebuyers
From 2015 to 2024, home values rose by 94%, riding higher construction costs and limited supply that couldn’t meet the increased demand. In the same period, the median household income rose by only 15%, pushing would-be homeowners to make concessions between what they want and what they can afford.
First-time homebuyers looking for affordable places to put down roots may need to explore smaller, lesser-known cities to find the best deals. Among U.S. metropolitan areas, homeowners spend a median of 57.1% of their income on housing costs, according to Insurify analysis.
The most affordable and desirable cities in the U.S. are located in eight states, mostly in the South and Midwest: Alabama, Iowa, Minnesota, New York, North Carolina, Pennsylvania, West Virginia, and Wisconsin.
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While spread across the country, these cities share a few key factors. They generally have a low cost of living that often falls well below the U.S. average, or even the state average. They have quick access to the great outdoors, like nearby state parks or walking trails.
And, key for affordability, most also have low climate risk, which can keep home insurance costs low and reduce the possibility of expensive repairs. Many of these cities also have growing populations, rising property values, and expanding economies.
In these 10 cities, homeownership costs make up the smallest share of median household income.
1. Huntsville, Alabama
Percent median income spent on homeownership costs: 49%
Desirability Score (out of 100): 73.6
Average annual cost of home insurance: $2,784
Average monthly cost of homeownership: $3,388
Huntsville is a lively city near Alabama’s northern border with Tennessee. It’s the most affordable city because homeowners earning the metro area’s median household income of $83,529 could expect to spend 49% of their income on homeownership costs, the lowest share among the most affordable and desirable cities.
Its notably low unemployment rate of 2.2%, below-average violent crime rate, and above-average school district score added up to its Desirability Score of 73.9. Its monthly homeownership costs of $3,388 fall below the U.S. average of $3,618.
Huntsville is also known as “Rocket City,” since it’s home to the U.S. Space and Rocket Center. The city has one of the fastest-growing urban economies in the U.S., according to nonpartisan think tank the Milken Institute.[1] Leading employers include the U.S. government, healthcare, and auto manufacturing at the nearby Mazda Toyota plant.
2. Janesville, Wisconsin
Percent median income spent on homeownership costs: 51%
Desirability Score (out of 100): 70.1
Average annual cost of home insurance: $1,441
Average monthly cost of homeownership: $3,148
Janesville is a quaint riverside city in Wisconsin near the Illinois border. In about an hour’s drive, residents can reach larger cities like Madison and Milwaukee. The unemployment rate is just 2.8%, well below the U.S. average of 4.4%, and the city saw modest job growth from 2019 to 2024, according to the Milken Institute.
Even in this small, affordable city, first-time buyers spend 51% of the city’s median household income of $74,390 on homeownership costs. The median home value is $274,708, nearly 25% lower than the U.S. median of $357,275. Home values grew 23.5% since 2022, nearly five times the national average, making it a great city for middle-income buyers looking to invest in property.
3. Fond du Lac, Wisconsin
Percent median income spent on homeownership costs: 51%
Desirability Score (out of 100): 71.9
Average annual cost of home insurance: $1,353
Average monthly cost of homeownership: $3,113
Fond du Lac is a charming, affordable city on the banks of Lake Winnebago. Milwaukee is about an hour’s drive south, and Green Bay is an hour north. It’s a walkable city with a low cost of living, low unemployment, and low climate risk.
Fond du Lac also has a relatively diverse economy, with manufacturing, education, health services, and trade among the largest sectors, according to Wisconsin’s Department of Workforce Development.[2]
Fond du Lac is another great city for first-time buyers wanting to invest in property. Property values have also grown 21.2% since 2022, more than four times the U.S. average of 5.5%, to $274,455. Like in Janesville, homeowners spend about 51% of the metro area’s median household income of $73,154 on home costs.
4. Ames, Iowa
Percent median income spent on homeownership costs: 51%
Desirability Score (out of 100): 88.8
Average annual cost of home insurance: $2,513
Average monthly cost of homeownership: $3,042
Home to Iowa State University, Ames is a bustling college town in the center of Iowa, about a 40-minute drive north of Des Moines. Its low violent crime rate, low unemployment, and strong school district scores add up to its high 88.8 Desirability Score.
The university, a large U.S. Department of Agriculture service office, hospitals, and retailers provide a strong job market that has seen modest growth over the last few years.
Median household income and homeownership costs are similar to those in Janesville and Fond du Lac: costs add up to 51% of the city’s median household income of $71,090. Property values, too, have grown faster than the U.S. average, at 7.8% from 2022 to 2025. The median home value in Ames is $254,485, almost one-third lower than the U.S. average of $357,275.
5. Morgantown, West Virginia
Percent median income spent on homeownership costs: 52%
Desirability Score (out of 100): 88.6
Average annual cost of home insurance: $1,517
Average monthly cost of homeownership: $2,679
Morgantown is a lush riverside college town with quick access to scenic trails and the West Virginia University football stadium. Homeownership costs are lower in Morgantown than in the first four cities, but the median household income is also lower. Costs account for 52% of Morgantown’s median household income of $62,394.
The city is walkable and has a cost of living 18% lower than the U.S. average. Its low violent crime rate and high school district scores contribute to its 88.6 Desirability Score. The nearest major city is Pittsburgh, Pennsylvania, a little over an hour’s drive north from Morgantown. It faces few climate risks and has low home insurance rates and steadily climbing property values, which could all add up to a stable investment for first-time buyers.
6. Gettysburg, Pennsylvania
Percent median income spent on homeownership costs: 53%
Desirability Score (out of 100): 96.5
Average annual cost of home insurance: $1,265
Average monthly cost of homeownership: $3,580
Gettysburg is a charming, walkable, historic city in Southern Pennsylvania. It claims the highest Desirability Score among the most affordable cities for first-time homebuyers. Its exceptionally low violent crime rate, below-average unemployment rate, and strong school district scores contribute to its high score of 96.5.
Gettysburg isn’t close to a large city; Baltimore, Maryland, is the nearest major city, about an hour and a half’s drive southeast. But its property values have increased at a rate nearly three times the national average, while the median home value of $320,511 remains below the U.S. median. The area has a median household income of $81,071, and homeownership costs take up 53% of household income.
7. Gadsden, Alabama
Percent median income spent on homeownership costs: 53%
Desirability Score (out of 100): 73.8
Average annual cost of home insurance: $3,241
Average monthly cost of homeownership: $2,352
Gadsden is a historic riverside city with easy access to nature parks and golf trails, about an hour’s drive east of Birmingham. Residents enjoy a low cost of living and a largely walkable city. The low unemployment rate of 2.8% contributes to its Desirability Score of 73.8.
Gadsden has the lowest median household income among the 10 most affordable and desirable cities, at $53,070. But it has the lowest homeownership costs among the most affordable cities for first-time homebuyers, at $2,352 per month, which amounts to 53% of the median income.
Home values have grown at double the national average rate but remain affordable for first-time buyers. The median home value in Gadsden is $177,803, about half the U.S. median home value.
8. Mankato, Minnesota
Percent median income spent on homeownership costs: 54%
Desirability Score (out of 100): 79.1
Average annual cost of home insurance: $3,224
Average monthly cost of homeownership: $3,349
Mankato is a charming, affordable city ringed by nature, like Minneopa State Park and Mount Kato, a popular ski mountain. And while Mankato isn’t the most walkable city, its cost of living is 13% below the U.S. average, and the area faces little climate risk.
Mankato has a diverse economy, with healthcare, education, and commercial services employing the most residents.[3] Its low unemployment rate of 2.9% contributes to its Desirability Score of 79.1. The city’s median household income is $74,722, and buyers earning that spend 54% of their income on homeownership costs.
First-time buyers would benefit from its bustling college-town atmosphere, economic opportunities, and rising property values. The median home value in Mankato is $293,781, about 18% below the U.S. median.
9. Glens Falls, New York
Percent median income spent on homeownership costs: 55%
Desirability Score (out of 100): 67.7
Average annual cost of home insurance: $1,577
Average monthly cost of homeownership: $3,413
Glens Falls, known as the Gateway to the Adirondacks, is a picturesque, historic city on the Hudson River in upstate New York. It’s affordable and walkable, with a below-average cost of living. Significant local industries include medical and surgical instrument manufacturing, finance, and tourism, since Glens Falls is a short drive south of Lake George.[4]
The median home value in Glens Falls is $293,681, and property values have risen at nearly twice the national average rate, making it a great place for first-time buyers to invest. Homeownership costs add up to 55% of the area’s median household income of $74,953. The area also faces little climate risk, reducing the likelihood of expensive repairs or skyrocketing home insurance rates.
10. Raleigh, North Carolina
Percent median income spent on homeownership costs: 55%
Desirability Score (out of 100): 83.3
Average annual cost of home insurance: $2,292
Average monthly cost of homeownership: $4,401
Raleigh is a great choice for first-time homebuyers who crave a big city environment. Residents enjoy access to museums, nightlife, traditional barbecue, and popular college sports games. It’s also easy to get around: Raleigh scores well for the ease of walking, biking, and taking public transit.
Its top public education scores and below-average violent crime and unemployment rates contribute to its Desirability Score of 83.3. Raleigh also has a diverse, growing economy, with 15.8% job growth from 2019 to 2024, according to the Milken Institute.
Buyers may end up trading some affordability for the convenience of an urban area. Raleigh is the only city on this list with a median home value higher than the U.S. median, at $429,457. Homeownership costs are $4,401 per month, but the city’s higher median household income of $96,066 means those costs still account for only 55%.
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