littleny – stock.adobe.com
New York City is a lot of things, but it’s far from the best city to buy your first home. It’s closer to the worst, according to a new study from WalletHub.
The personal finance company ranked 300 US cities to see which are the best for first-time homebuyers. The Big Apple, it found, is No. 291.
The data follows findings that first-time homebuying was down last year, with 32% of home purchases made by first-time buyers in 2023, compared to 40% in years prior, according to the National Association of Realtors.
WalletHub analysts used 22 factors to inform its findings, from crime rates to cost of living and property taxes. The five boroughs were tied with several other cities at 277th highest for cost of living. They received a quality of life index of 211, with 300 being the worst.
It’s certainly not cheap to live here: the average cost of a home in New York was $756,721 as of June, according to Zillow, compared to a nationwide average of $363,438, the site reported.
“The city scored poorly across critical metrics such as affordability, real-estate market conditions, and quality of life,” WalletHub analyst Cassandra Happe said of New York’s bad report card. “Additionally, New York City’s real estate market is highly competitive and often inaccessible due to high demand and limited supply of affordable housing.”
New York is worth it for other factors, others say, and won’t be put down by a study.
“The city boasts some of the best Michelin-starred restaurants, diverse neighborhoods, world-class museums, theaters and cultural institutions,” said Coldwell Banker Warburg Regional Vice President Kevelyn Guzman, adding that its public transportation system can’t be beaten. “With the right strategy and guidance, first-time buyers can still find their dream home in the city that never sleeps.”
Several other New York locales were named, including Buffalo (No. 100), Albany (No. 217) and The Bronx’s northern neighbor, Yonkers (No. 257).
At the other end of the spectrum, five Florida cities nabbed top spots, with Palm Bay, a small coastal metropolis on the eastern side of the Sunshine State, named the No. 1 best for first-time homebuyers. Tampa came in fourth and Orlando trailed right behind at fifth.
But just because Palm Bay is at the tippy top doesn’t mean it’s the most affordable, the report noted. That accolade went to Detroit, which has the lowest median-home-price-to-median-income ratio, according to WalletHub. Santa Barbara, Calif. is the most expensive city on the list by that index.
Regarding property taxes, Honolulu has the lowest, the report found, and Waterbury, Conn. has the highest.