Housing market report
Central Texas city named No. 3 U.S. market for first-time homebuyers
This renovated home in Killeen is on the market for $219,000.
Central Texans who want to settle down in an up-and-coming, affordable city won't find a better place than Killeen, which just earned a coveted top-three spot in SmartAsset's 2025 rankings of the best housing markets for first-time homebuyers.
SmartAsset rated 180 of the largest U.S. metro areas based on relative affordability, housing inventory and demand, home pricing growth projections, and the relative population of residents in their 20s and 30s.
The South Texas border town of McAllen climbed through the ranks as the No. 1 best U.S. housing market for first-time homebuyers, while Killeen ranked third. Lawton, Oklahoma, wiggled between the two Texas cities in the top three.
This isn't the first time Killeen has been praised for its favorable housing market: The city was crowned the No. 1 housing market for first-time buyers in SmartAsset's 2023 report.
In 2024, SmartAsset revealed Killeen's explosive popularity also created a shocking 146 percent increase in high-income households.
The Central Texas city is located about 70 miles north of Austin. The typical household makes a median income of nearly $75,000 a year. Its affordable median housing prices — which came out to $253,104 as of April 2025 — make it a highly desirable place for first-time buyers.
Other factors that influence Killeen's real estate market include its "days to pending" rate, meaning the amount of time it takes for a home to go under contract when a seller accepts an offer. It takes about 45 days for a Killeen home to be listed as pending sale, showing that buyers can take their time with searching for the right home.
Potential homebuyers should also consider a city's population demographics before making the big decision to move. Living in a place with a fair amount of similarly-aged individuals can help with settling in and building community. And the report found about 24 percent of all Killeen residents are between the ages of 25 to 39.
"Hopeful first-time homebuyers would be prudent to consider the competitive landscape, lifestyle, social and future growth potential of their home," the report said. "Taking on such a large investment, particularly when the costs of homeownership may outpace the costs of renting in some places, requires planning ahead in terms of your career and family, as well as your budget."
The top 10 best cities for first-time homebuyers in 2025 are:
- No. 1 – McAllen, Texas
- No. 2 – Lawton, Oklahoma
- No. 3 – Killeen, Texas
- No. 4 – Warner Robins, Georgia
- No. 5 – Appleton, Wisconsin
- No. 6 – Fayetteville, North Carolina
- No. 7 – Savannah, Georgia
- No. 8 – Clarksville, Tennessee
- No. 9 – Cape Coral, Florida
- No. 10 – Muncie, Indiana
