The Best States for First Time Home Buyers 

Where you buy your first home shapes your future, your finances, your career, your community, and even your sense of belonging. If you’re searching for the best states for first-time home buyers, you’re not alone. With rising home prices and changing job markets, finding a place that checks all your boxes is more important than ever. 

In this blog, we’ve done the research for you. Using data from Niche, Yahoo Finance, WalletHub, and the World Population Review, we’ve identified the top states where first-time buyers can thrive. Whether you’re drawn to the Southeast’s affordability, the Midwest’s stability, or the West’s outdoor adventures, this guide will help you make a confident, informed decision.

Where you buy your first home shapes your future, your finances, your career, your community, and even your sense of belonging. If you’re searching for the best states for first-time home buyers, you’re not alone. With rising home prices and changing job markets, finding a place that checks all your boxes is more important than ever. 

In this blog, we’ve done the research for you. Using data from Niche, Yahoo Finance, WalletHub, and the World Population Review, we’ve identified the top states where first-time buyers can thrive. Whether you’re drawn to the Southeast’s affordability, the Midwest’s stability, or the West’s outdoor adventures, this guide will help you make a confident, informed decision. 

How to Choose the Best State to Buy Your First Home 

Buying your first home is about more than just finding the lowest price or the smallest down payment. It’s a major life decision that impacts your financial security, career, and happiness for years to come. Here are the five pillars to consider as you search for the best states for first time home buyers: 

1. Affordability 

• Can I buy a home without stretching my budget too thin? 
• Look at median home prices, property taxes, and insurance costs. 
• Consider long-term expenses, not just the sticker price. 

2. Career Opportunity

 

• Will you have job security and room for income growth? 
• Research unemployment rates and industry trends in your target states. 
• Some states have booming sectors in healthcare, tech, logistics, and more. 

3. Cost of Living 

• How far does your paycheck stretch for groceries, utilities, and transportation? 
• States with lower costs of living let you save more and stress less. 

4. Quality of Life 

• Do you want to live in this state for years to come? 
• Consider crime rates, outdoor amenities, schools, and cultural attractions. 
• Explore what makes each community unique. Do you prefer close-knit neighborhoods or the safety of a military atmosphere like Fort Benning?   

5. Homebuyer Support 

• Are there programs to help you get started? 
• First-time buyer programs often offer down payment assistance, lower interest rates, or tax credits. 
• Types of programs include state-run grants, federal FHA loans, and local incentives.  

Top 10 Best States for First-Time Buyers in 2025

We’ve analyzed affordability, job markets, cost of living, quality of life considerations, and support programs to create this list of the best states for first-time home buyers. Use this guide to compare your options and find your perfect fit. Median home price and property tax rates are all sourced from WalletHub, and the cost of living is sourced from World Population Review.

1. Georgia 

• Median Home Price: $272,900 (WalletHub, 2025) 
• Property Tax Rate: 0.81% (WalletHub) 
• Cost of Living: -8.7% (U.S. avg = 0%) (World Population Review, 2024) 
• First-Time Buyer Support: Georgia Dream Program with up to $10,000 in down payment assistance 
• Best For: Military families, healthcare workers, skilled trade workers, young families, and remote workers 

Georgia is a standout for first-time buyers. Cities with a low cost of living, like Columbus, Augusta, and Macon, offer affordable homes, strong job markets, and a welcoming community. The Georgia Dream Program makes homeownership accessible, even if you don’t have a large down payment saved. Plus, Columbus’s military-friendly culture and diverse weekend activities make it a top choice for many. 

Ultimately, whether you’re looking for a great place to raise your family or a top state for young professionals who want to buy a home, Georgia is definitely worth considering. 

2. Ohio

 

• Median Home Price: $199,200 
• Property Tax Rate: 1.36% 
• Cost of Living Index: -5.8% 
• First-Time Buyer Support: Ohio Housing Finance Agency grants, mortgage tax credits 
• Best For: Young professionals, families, and those seeking urban amenities at a low cost 

Ohio offers a strong mix of affordable homes and urban living. Cities like Columbus (Ohio), Cincinnati, and Cleveland have revitalized downtowns, diverse job markets, and plenty of first-time buyer programs. In addition to these urban centers, Dayton and Toledo also provide affordable options and growing communities for new buyers.

3. Texas 

• Median Home Price: $260,400 
• Property Tax Rate: 1.58% 
• Cost of Living Index: -7.3% 
• First-Time Buyer Support: My First Texas Home, down payment and closing cost assistance 
• Best For: Tech workers, healthcare professionals, and families seeking space and opportunity 

Texas is known for its booming job market and affordable suburbs. While property taxes are higher, strong wages and no state income tax help balance the budget. Cities like Austin, Dallas, Houston, and San Antonio each offer unique neighborhoods, vibrant culture, and a range of homes ideal for first-time buyers.

4. North Carolina 

• Median Home Price: $259,400 
• Property Tax Rate: 0.70% 
• Cost of Living Index: -2.2% 
• First-Time Buyer Support: NC Home Advantage Mortgage, down payment help 
• Best For: Outdoor lovers, remote workers, and families 

North Carolina blends mountain adventures with coastal charm. Cities like Raleigh and Charlotte offer job growth and affordable starter homes. Durham, Greensboro, and Winston-Salem also stand out for their welcoming communities and accessible price points for new buyers.

5. Indiana 

• Median Home Price: $201,600 
• Property Tax Rate: 0.74% 
• Cost of Living Index: -9.5% 
• First-Time Buyer Support: Indiana Housing and Community Development Authority programs 
• Best For: Budget-conscious buyers, families, and those seeking small-town life 

Indiana’s low home prices and cost of living make it a top pick for first-time buyers looking to maximize their investment. Indianapolis, Fort Wayne, and Evansville offer a mix of urban amenities and affordable neighborhoods, making them attractive for those entering the market.

6. Michigan 

• Median Home Price: $217,600 
• Property Tax Rate: 1.28% 
• Cost of Living Index: -9.6%
• First-Time Buyer Support: MSHDA down payment assistance 
• Best For: Young professionals, families, and those seeking lakefront living 

Michigan offers affordable homes, scenic beauty, and strong first-time buyer support. Detroit, Grand Rapids, and Ann Arbor provide diverse housing options, while cities like Lansing and Kalamazoo are known for their community feel and affordability. 

7. Pennsylvania 

• Median Home Price: $240,500 
• Property Tax Rate: 1.35% 
• Cost of Living Index: -4.9% 
• First-Time Buyer Support: PHFA homebuyer programs 
• Best For: History buffs, city lovers, and suburban families 

Pennsylvania’s diverse cities and suburbs offer something for everyone, with solid support for new buyers. Philadelphia, Pittsburgh, and Harrisburg are popular for their job opportunities and cultural scenes, while Allentown and Erie provide more affordable entry points.

8. Missouri 

• Median Home Price: $215,600 
• Property Tax Rate: 0.88% 
• Cost of Living Index: -11.3%
• First-Time Buyer Support: Missouri Housing Development Commission assistance 
• Best For: Families, retirees, and those seeking a low cost of living 

Missouri’s affordable homes and low taxes make it easy to buy your first place. Kansas City, St. Louis, and Springfield are top choices for first-time buyers, with a range of neighborhoods and strong community support.

9. Minnesota 

• Median Home Price: $305,500 
• Property Tax Rate: 1.04% 
• Cost of Living Index: -4.9% 
• First-Time Buyer Support: Minnesota Housing Start Up program 
• Best For: Outdoor enthusiasts, families, and tech workers 

Minnesota combines urban amenities with natural beauty and strong buyer support. Minneapolis, St. Paul, and Rochester offer thriving job markets and vibrant communities, while Duluth and Mankato provide more affordable options for new homeowners. 

10. Tennessee 

• Median Home Price: $256,800 
• Property Tax Rate: 0.55% 
• Cost of Living Index: -9.5%
• First-Time Buyer Support: THDA Great Choice Home Loan program 
• Best For: Music lovers, outdoor adventurers, and those seeking no state income tax 

Tennessee’s low taxes and vibrant cities make it a strong choice for first-time buyers. Nashville, Memphis, and Knoxville are well-known for their lively culture, while Chattanooga is gaining popularity for its affordability.

Comparing the Best States for Buying a Starter Home 

Here’s a quick comparison of the best states for first time home buyers: 

State	Median Home Price	Property Tax Rate	Avg. Monthly Payment	First-Time Buyer Support	Best For
Georgia	$272,900	0.81%	$1,928	Georgia Dream Program	Military, healthcare, families
Ohio	$199,200	1.36%	$1,418	OHFA grants, tax credits	Young pros, families
Texas	$260,400	1.58%	$1,984	My First Texas Home	Tech, healthcare, families, no state income tax
North Carolina	$259,400	0.70%	$1,901	NC Home Advantage	Outdoor, remote, families
Indiana	$201,600	0.74%	$1,367	IHCDA programs	Budget, families, small towns
Michigan	$217,600	1.28%	$1,455	MSHDA assistance	Young pros, lakefront, families
Pennsylvania	$240,500	1.35%	$1,658	PHFA programs	City, suburbs, history
Missouri	$215,600	0.88%	$1,441	MHDC assistance	Families, retirees, low cost
Minnesota	$305,500	1.04%	$1,995	Start Up program	Outdoor, tech, families
Tennessee	$256,800	0.55%	$1,776	THDA Great Choice	Music, outdoor, no state income tax

*Sourced from Yahoo Finance 

Resources to Support Your First-Time Buyer Journey 

Finding the right support can make all the difference as you navigate the path to homeownership. Whether you’re crunching numbers, learning about down payment assistance, or connecting with local experts, having the right tools at your fingertips can simplify the process and boost your confidence. 

Here are some trusted resources and tools to help you on your path to homeownership: 

• Mortgage Calculator:  Estimate your monthly payments 
• HUD First-Time Homebuyer Programs: Find what homebuyer programs are available in your state or city
• Georgia Dream Program:  Down payment assistance for Georgia buyers 
• Down Payment resource: Find down payment assistance across the U.S 

Our Top Choice 

Choosing where to buy your first home is a big decision, but with the right information, you can find a place that fits your budget, career, and lifestyle. Georgia, and especially Columbus, stands out for its affordability, job opportunities, and welcoming communities. 

With programs like Georgia Dream and local support from Columbus Connectors, your path to homeownership is closer than you think. 

Ready to start your journey? Contact us today to learn more about buying your first home in Columbus, Georgia, and why this city is one of the best places for first-time home buyers in 2025!