9 Best Mid-Size Cities for New Grads To Buy a Home Under $250K
For recent graduates trying to land their first home, the search for something affordable can feel like a losing battle. But a new joint analysis from Redfin and Glassdoor identifies a handful of mid‑size U.S. cities offering a combination of attainable home prices, solid early‑career salaries and livable day‑to‑day conditions.
To compile its list, real estate site Redfin and job info site Glassdoor evaluated cities in multiple categories. For housing affordability, the study factored in starter home inventory, ownership costs, ownership cost trends and rent-to-income ratios. The career opportunities category looked at average early-career incomes, economic diversity, job satisfaction, career opportunity satisfaction, job availability and post-pandemic job availability trends. For quality of life, Redfin and Glassdoor weighed work-life balance ratings, along with median transit and walkability scores.
Try This: 20 ZIP Codes First-Time Homebuyers Can Afford
Look Out! 5 Signs You’re Losing Money Every Month — and How To Find the Leaks
Of the cities in the resulting top 10 list, nine have average starting home prices of less than $250,000. The outlier – Bridgeport, Connecticut – has an average starter home price of $330,000.
The rest range from $144,000 to $240,000. Here’s a look at each city. You’ll find five of them in the South.
1. New Orleans
Average annual early career income: $57,414
Price of a typical starter home: $175,000
Years to save for down payment: 3 years, 1 month
Monthly mortgage payment as % of income: 24%
Why it rose to the top of Redfin’s rankings: Job variety, pedestrian-friendly, transit-friendly
2. Palm Bay, Florida
Average annual early career income: $65,010
Price of a typical starter home: $210,000
Years to save for down payment: 3 years, 9 months
Monthly mortgage payment as % of income: 25.4%
Why it rose to the top of Redfin’s rankings: Strong starting salaries, work-life balance
3. Wichita, Kansas
Average annual early career income: $55,285
Price of a typical starter home: $144,535
Years to save for downpayment: 3 years, 1 month
Monthly mortgage payment as % of income: 20.6%
Why it rose to the top of Redfin’s rankings: Starter home inventory, affordable starter homes, career growth potential
4. Mobile, Alabama
Average annual early career income: $53,030
Price of a typical starter home: $169,900
Years to save for down payment: 3 years, 5 months
Monthly mortgage payment as % of income: 25.2%
Why it rose to the top of Redfin’s rankings: Pay outpaces rent, career growth potential, low rents relative to income
5. Anchorage, Alaska
Average annual early career income: $65,864
Price of a typical starter home: $240,000
Years to save for down payment: 3 years, 11 months
Monthly mortgage payment as % of income: 28.7%
Why it rose to the top of Redfin’s rankings: Strong starting salaries, career growth potential
6. Lincoln, Nebraska
Average annual early career income: $53,871
Price of a typical starter home: $212,000
Years to save for down payment: 4 years, 7 months
Monthly mortgage payment as % of income: 31%
Why it rose to the top of Redfin’s rankings: High job satisfaction for recent grads, work-life balance, rents are low relative to income
7. Trenton, New Jersey
Average annual early career income: $74,570
Price of a typical starter home: $220,000
Years to save for downpayment: 4 years, 9 months
Monthly mortgage payment as % of income: 23.2%
Why it rose to the top of Redfin’s rankings: Affordable starter homes, strong starting salaries, job opportunities
8. Waco, Texas
Average annual early career income: $50,430
Price of a typical starter home: $180,000
Years to save for downpayment: 4 years, 9 months
Monthly mortgage payment as % of income: 28.1%
Why it rose to the top of Redfin’s rankings: High job satisfaction for recent grads, career growth potential
9. Lexington, Kentucky
Average annual early career income: $52,648
Price of a typical starter home: $211,000
Years to save for downpayment: 5 years
Monthly mortgage payment as % of income: 31.6%
Why it rose to the top of Redfin’s rankings: Strong bounce-back from pandemic, pedestrian-friendly
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
