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Austin named No. 25 best big city for first-time homebuyers right now

Austin still has big appeal for first-time buyers.
A new list ranking the best cities for first-time homebuyers has placed Austin among the top 25 big markets for buyers.
WalletHub's new study — which analyzes the affordability, quality of life, and real estate market in 300 U.S. cities — ranks Austin No. 133 overall in the U.S. to buy your first home. And, when broken down by city size, WalletHub ranks Austin No. 25 out of 69 among large cities for first-time buyers.
Austin's appeal for first-time buyers is mostly due to its favorable real estate market and quality of life scores, with poor affordability as a main detractor, according to the report's findings.
The Capital City ranks 30th out of all cities studied for its housing market, but it appears farther down the list for its quality of life, landing at a surprising 139th nationally. Maybe less surprising, the city's affordability ranking is among the worst, at No. 256, but that wasn't enough to outweigh its stellar performance in the other main categories.
Overall, the Lone Star State has taken a tumble among the best places for first-time buyers. In fact, only one Texas city — the Dallas suburb of McKinney — lands among the top 100 of the report. A total of 20 Texas cities rank outside the top 100, with Laredo (No. 200), Mesquite (No. 202), San Antonio (No. 208), Dallas (No. 233), and Houston (No. 271) coming in as the state's worst.
First-time buyers across the country are entering the housing market at a difficult time, the report says. The National Association of Realtors reported the share of first-time homebuyers sank to an all-time low in 2025, to 21 percent, whereas the historic national average is 40 percent.
"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report's author wrote. "People willing and able to invest in a house this year must balance what they want and need with what they can afford. Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage."
However, in the May Central Texas Real Estate Report, the Austin Board of Realtors predicted more opportunities for homebuyers this summer as prices continue to cool and sales climb.
