It’s no secret the U.S. housing market has slowed considerably since the pandemic. Interest rates are high. Inventory is low. It’s a difficult environment for first-time homebuyers. But while the situation can be frustrating, there is still plenty of opportunity for people interested in building equity, establishing roots, and making a place for themselves. Every city offers different benefits, but only a few have the right combination of housing costs, salaries, and new construction required to attract entry level buyers. Based on our analysis of prices, income, and the number of available listings, here are the best cities to find a starter home.
The Steel City has some of the lowest home prices in the country. The average home sells for nearly $130,000 below the national average, making Pittsburgh one of the most affordable cities in the Northeast and Great Lakes region. What’s more, the typical mortgage payment is only 14.1 percent of median income in the area, making it relatively easy to manage your finances while paying down your principal.
The city even offers grants, down payment assistance, and low-interest mortgage options for first-time buyers, to help them get their foot in the door. There is also a large supply of 2-3 bedroom homes, giving buyers a better chance of finding something in their preferred neighborhood, close to local amenities such as schools and restaurants.
Homes in Fort Wayne are nearly as affordable as they are in the Steel City. As of 2025, Fort Wayne’s median sale price is only $4,000 higher than Pittsburgh’s. Its monthly mortgage payments are higher as well, but not by much. The average homeowner only spends around 14.9 percent of their income on housing.
The number of two and three bedroom houses, the size typically associated with starter homes, is also rather large for a mid-size city like Fort Wayne. Its housing stock actually expanded during the first part of 2025, providing even more choices for aspiring homeowners.
In addition to its growing housing market, the city’s low crime rate has made it a particularly attractive destination for families with young children, while the dynamic economy, centered on healthcare, manufacturing, and aerospace, has drawn a number of job seekers as well.
Homes in Oklahoma City are even less expensive than in Pittsburgh and Fort Wayne - $159,000 below the national average. However, monthly mortgage payments are around 17 percent of median household income, making it a bit more difficult to afford a house here than up north, though that may change in response to the flourishing housing market.
The number of new homes in the city has grown by 16 percent over the past decade, driven mostly by the strong economy, rising population, and high quality of life. The Bricktown Entertainment District and Boathouse District continue to draw considerable interest from new and current residents for their exciting mix of shops, restaurants, and art galleries.
With an average sale price of $249,000, Louisville has a housing market on par with Pittsburgh and Fort Wayne. The standard mortgage payment is roughly equivalent to the ones in Oklahoma City, around 17.1 percent. While generally considered a seller’s market, construction of single-family and multi-family homes has risen steadily over the past several years, providing an increasingly diverse selection for prospective buyers.
Underlying this new construction is the city’s “economic renaissance,” which has seen significant job and business creation, as well as a considerable amount of capital investment. The city’s cultural attractions, including the Bourbon Trail, Muhammed Ali Center, and Louisville Slugger Museum, not to mention Churchill Downs and the Kentucky Derby, only add to the city’s appeal.
Known alternately as the “Flower City” and the “Flour City” due to its dual roles as an agricultural and milling hub, Rochester has a housing market even more budget-friendly than the one in Pittsburgh. Buyers here pay close to $140,000 less than the national average.
Their mortgage payments, on the other hand, are noticeably higher. The average homeowner devotes 22 percent of their monthly income to housing costs. While this makes Rochester the most expensive city on the list, it’s significantly less expensive than most other major cities in the country, where the average homeowner spends around 38 percent of their monthly income on housing.
Rochester’s real estate market is not nearly as robust as places like Louisville or Oklahoma City, but thanks to its Home Purchase Assistance Program, which provides grants of up to $6,000 to eligible, first-time buyers, over 22 percent of residents aged 25 to 34 own their own home, compared to a national average of 14 percent.
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