Filed Under:Agent Broker, Sales & Marketing

10 best and worst cities for first-time home buyers in 2016

An important and often overlooked consideration when buying a first home is the insurance implications of the purchase. (AP Photo/Richard Vogel, File)
An important and often overlooked consideration when buying a first home is the insurance implications of the purchase. (AP Photo/Richard Vogel, File)

First-time home buyers must take into account many costs associated with buying a home, such property taxes, routine maintenance, homeowners' association fees and utilities.

But an important and often overlooked consideration is the insurance implications of the big purchase. 

In areas where first-time home buyers are flocking, insurance agents are an important resource to assist clients in making sure properties qualify for insurance and providing an estimate of the annual premium.

Related: These 10 states have the lowest Homeowners' premiums

To determine the attractiveness of first-time home-buyer markets across the United States, WalletHub compared 300 cities of varying sizes across three key dimensions (affordability, real estate market and quality of life) using 19 metrics, such as average cost of homeowners' insurance, real estate taxes and property crime rates.

Here are the top 10 best cities in the United States for first-time home buyers in 2016:

Lexington, Kentucky

A row of older houses next to a parking lot in downtown Lexington, Kentucky. (Photo: iStock)

10. Lexington, Kentucky

Total score: 62.84.

Affordability: 45.

Real estate market: 57.

Quality of life: 36.

Related: Insurance basics for new homeowners

Centennial, Colo. neighborhood

A view of the Greenfield neighborhood in east Centennial, Colorado, looking toward the southwest. The Front Range of the Rocky Mountains are in the background. (Photo: J. Heft/PC360)

9. Centennial, Colorado

Total score: 62.98.

Affordability: 122.

Real estate market: 33.

Quality of life: 7.

Lincoln, Nebraska

People in the busy downtown area of Lincoln, the capital city of the state of Nebraska. (Photo: iStock)

8. Lincoln, Nebraska

Total score: 63.55.

Affordability: 70.

Real estate market: 43. 

Quality of life: 21.

Boise, Idaho

Downtown Boise, Idaho. (Photo: iStock)

7. Boise, Idaho


Total score: 63.73.

Affordability: 3.

Real estate market: 87.

Quality of life: 91.

Related: Homeownership rate in the U.S. tumbles to the lowest since 1965

Longmont, Colorado statute

Snow lies on a statue of Teddy Roosevelt which someone wrapped with a scarf in Longmont, Colorado, prior to an overnight snowstorm. (Photo: Peter M. Fredin/AP Photo)

6. Longmont, Colorado

Total score: 64.11.

Affordability: 145.

Real estate market: 16. 

Quality of life: 2.

Westminister, Colorado houses

Houses in northeastern Westminister, Colorado, with the Rocky Mountains in the background. The highest peak on the right side of the picture, underneath the lower of the two clouds, is Longs Peak. (Photo: Wikipedia)

5. Westminister, Colorado

Total score: 64.31.

Affordability: 127.

Real estate market: 14. 

Quality of life: 8.

Cedar Rapids, Iowa

Cedar Rapids, Iowa. (Photo: iStock)

4. Cedar Rapids, Iowa

Total score: 64.44.

Affordability: 17.

Real estate market: 82. 

Quality of life: 47.

Thornton, Colorado Welcome sign

A sign over Interstate 25 welcomes motorists to Thornton, Colorado. (Billy Hathorn/Wikimedia)

3. Thornton, Colorado

Total score: 65.42.

Affordability: 125.

Real estate market: 22. 

Quality of life: 3.

Related: Sales of existing U.S. homes rise to highest level in 9 year

Welcome sign on 10th Street and 59th Avenue in Greeley, Colorado

A welcome sign on 10th Street and 59th Avenue in Greeley, Colorado. (Photo: Wikimedia)

2. Greeley, Colorado

Total score: 65.46.

Affordability: 112.

Real estate market: 9. 

Quality of life: 5.

Overland Park, Kansas houses

Johnson County Community College, top, overlooks homes in Overland Park, Kansas. (Photo: Jim Barcus/AP Photo)

1. Overland Park, Kansas

Total score: 68.49.

Affordability: 58.

Real estate market: 29.

Quality of life: 11.

Keep reading to learn the 10 worst cities in the U.S. for first-time home buyers in 2016:

Inglewood, California

The Inglewood Oil Field in Inglewood, California, is one of the largest contigous urban oil fields in the United States (Photo: iStock)

10. Inglewood, California

Total score: 39.42.

Affordability: 255.

Real estate market: 278. 

Quality of life: 165.

Paterson, New Jersey

Paterson, New Jersey. (Photo: iStock)

9. Paterson, New Jersey

Total score: 38.99.

Affordability: 242.

Real estate market: 298. 

Quality of life: 25.

New York City

Brownstones in New York City. (Photo: iStock)

8. New York City


Total score: 38.79.

Affordability: 287.

Real estate market: 125. 

Quality of life: 285.


Homes in Miami. (Photo: iStock)

7. Miami

Total score: 38.67.

Affordability: 299.

Real estate market: 242. 

Quality of life: 285.

Compton High School sign

The local high school in Compton, California. (Photo: Wikipedia)

6. Compton, California


Total score: 38.57.

Affordability: 238.

Real estate market: 288.

Quality of life: 218.

Santa Barbara, California

Homes and palm trees on Shoreline Drive opposite Shoreline Beach Park in Santa Barbara, California. (Photo: iStock)

5. Santa Barbara, California


Total score: 38.19.

Affordability: 295.

Real estate market: 168. 

Quality of life: 187.


Berkeley, California

An aerial view of downtown Berkely, California. (Photo: iStock)

4. Berkeley, California

Total score: 38.10.

Affordability: 298.

Real estate market: 101. 

Quality of life: 261.

Oakland, California

The city of Oakland, California. (Photo: iStock)

3. Oakland, California

Total score: 37.06.

Affordability: 281.

Real estate market: 134. 

Quality of life: 296.

Miami Beach, Florida

A residential neighborhood in Miami Beach, Florida. (Photo: iStock)

2. Miami Beach, Florida

Total score: 34.09.

Affordability: 300.

Real estate market: 210. 

Quality of life: 267.

Newark, New Jersey

Homes in Newark, New Jersey. (Photo: iStock) 

1. Newark, New Jersey


Total score: 33.80.

Affordability: 229.

Real estate market: 300. 

Quality of life: 274.

Related: These 10 states have the highest Homeowners' premiums

Featured Video

Most Recent Videos

Video Library ››

Top Story

A dozen ways to prevent theft during the holidays

It's the most wonderful time of the year — not just for you and your family, but for thieves, too.

Top Story

10 tips for a safe and successful fundraising campaign this holiday season

Travelers’ non-profit D&O product manager Tom Herendeen offers 10 tips for non-profit organizations to keep in mind during this season of giving.

More Resources


eNewsletter Sign Up

Agent & Broker Insider eNewsletter

Proven success tips and essential information to help agents and brokers grow their practice – FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.