Valley suburbs ranked among best U.S. cities for first-time homebuyers

First-time homebuyer? Looking to live in the Valley? Not a bad situation to be in, according to a new study.

Nine Phoenix-metro area cities ranked in the top 25% in a WalletHub study of the best 300 U.S. cities for first-time homebuyers. Six out of those nine cities ranked in the top 20, with Surprise and Gilbert ranking second and third, respectively.

Apparently, the Phoenix area is a good place to start putting down deeper roots.

The financial site analyzed data from a variety of sources, including the Census Bureau, Bureau of Labor Statistics, Department of Housing and Urban Development and the ATTOM U.S. Foreclosure Market Report. It considered 22 metrics to compare affordability, the real estate market and quality of life in each city.

Overall, Surprise and Gilbert were the second- and third-best cities for first-time homebuyers. WalletHub found that, per capita, Surprise had a high number of new building permits and a high number of active home listings — 11th overall. It also had the fifth-lowest property crime rate and a high home-value appreciation rate, with home values increasing by a whopping 93% between 2018 and 2024. 

Meanwhile, Gilbert had a high number of new building permits and also had a low real estate tax rate — the seventh-lowest. That, combined with a strong job market, good crime rankings and a home value appreciation rate of 85% between 2018 and 2024, makes it a great place for first-time homebuyers to settle.

Overall, Arizona cities ranked incredibly well on WalletHub’s list. Yuma and Peoria ranked fifth and sixth, respectively, while Chandler ranked eighth. Scottsdale (14th) and Mesa (16th) also cracked the top 20, while Phoenix (47th) and Glendale (48th) snuck in the top 50. Tempe (63rd) and Tucson (69th) rounded out the Arizona cities in the ranking.

Perhaps that suggests that Arizona is becoming more hospitable for homebuyers than it has been in recent years. The state, and the Valley in particular, have faced a housing deficit since the COVID-19 pandemic, which saw housing prices skyrocket. More recently, housing prices have softened, while still remaining far higher than they were in 2019.

Here’s how Valley cities ranked.

63. Tempe
Affordability: 67th
Real estate market: 74th
Quality of life: 218th

48. Glendale
Affordability: 47th
Real estate market: 69th
Quality of life: 194th