The study comes from personal finance company WalletHub, which ranked 300 cities from across the United States according to three general metrics: affordability, real estate market and quality of life. To quantify those categories, the study examined a wide range of factors, including cost of insurance, crime rates, weather and the quality of schools. The data sources include the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research and U.S. Department of Housing and Urban Development.
Eleven of Arizona’s cities were included in the list, and all ranked in the top 100. But four of the Valley’s cities landed in the study’s top 25 cities for first-time homebuyers — not so bad for a place where the cost of living has skyrocketed in five years and a state where one in four residents have reportedly thought about leaving due to housing costs.
The placement of two of those cities — among the Valley’s bougier destinations — might come as a bit of a surprise to locals who know them. But the highest-ranking Phoenix metro city on the list is both more and less a surprise.
Surprise
The fourth-best place in the whole country for first-time homebuyers is none other than the West Valley’s rapidly-growing suburb. With a 2023 population of more than 160,000 people — up from 32,000 in 2000 — Surprise has gone from a rural blip on the map to a formidable suburb. Its population is the tenth-largest in Arizona.WalletHub ranked Surprise’s real estate market the best in the country, meaning that data on active listings, home price appreciation, new housing units, homeownership rates for millennials and more were most favorable for buyers.
When it comes to affordability, the city also notched the 21st-best ranking in the United States, the second-highest ranking for a city in Arizona behind Yuma. But its weakness, according to the study, is quality of life — Surprise was ranked at 207, in the bottom third of cities included. That low ranking is based on lower scores in the job market’s health, school system quality and driver friendliness. Notably, only two Arizona cities were in the top 100 for quality of life, including the next one on the list.
Gilbert
Not far behind Surprise, Gilbert ranked as the sixth-best place in the country for new homebuyers. Its population of more than 275,000 people makes it one of the largest municipalities in the state. Its place in the rankings may cause a double-take since more recently, an influx of luxurious new homes and a new, more bustling social scene in its downtown district have made it a prime spot for wealthier people to settle down. Gilbert’s median household income is among the highest in the state.The city’s all-around scores in the study’s three main categories were relatively consistent. Its real estate market came in 17th, while its affordability and quality of life rankings were 23rd and 85th, respectively.
Chandler
Coming in at the 11th spot in the national ranking is Chandler, a nondescript suburb that has mostly been populated by families for decades. With about 280,000 residents, it’s the fourth-most populous city in the state behind Phoenix, Tucson and Mesa.In terms of affordability and its real estate market, Chandler ranked 46th and 47th nationally. Its quality of life ranking was a bit lower at 79 — but its consistency in all three categories placed it on the verge of the top 10.
Peoria
While more well-established than Surprise, Peoria is another of the northwest Valley’s growing suburbs that was ranked among the best new homeowner cities in the country. With a population of about 200,000 and new developments in its downtown area, the city was ranked as the 13th-best place for new homebuyers.Its rankings in the study were 11th for its real estate market, 58th for its affordability and 158th for quality of life.
Scottsdale
Nearly in the top 20 was Scottsdale — perhaps a shock for anyone familiar with its reputation as a haven for the rich and bougie. Scottsdale ranked 21st.Its real estate market was ranked as the 15th best among the 300 cities in the survey and quality of life was respectable with the 65th ranking. However, its affordability rank fell in the middle of the pack at 146.
Source: WalletHub
Here’s where every Arizona city ranked:
4. Surprise
6. Gilbert
11. Chandler
13. Peoria
21. Scottsdale
27. Yuma
34. Mesa
53. Phoenix
63. Glendale
76. Tempe
86. Tucson
