Dallas neighbor declared No. 1 Texas city for first-time homebuyers

The Dallas housing market may not be for everyone, but one shining suburb is a cut above the rest. McKinney has been named the best market for first-time homebuyers in Texas, and it's among the 100 best in America, according to a new study.

WalletHub's new study — which analyzes the affordability, quality of life, and real estate market in 300 U.S. cities — ranks McKinney No. 70 overall in the U.S. to buy your first home. And, when broken down by city size, WalletHub ranks McKinney No. 31 out of 102 mid-sized cities in America.

McKinney's outstanding real estate market and quality of life are the biggest appeal for first-time buyers, with affordability its main detractor, according to the report's findings.

The Dallas suburb ranks 9th out of all 300 U.S. cities studied for its housing market, and its quality of life is 61st nationally. The report found McKinney also boasts the second-lowest property crime rates in the U.S. The city's affordability ranking, however, is among the 50 worst, at No. 258, but that wasn't enough to outweigh its stellar performance in the other main categories.

Overall, the Lone Star State has taken a tumble among the best places for first-time buyers. McKinney is the only city in Texas to appear among the top 100, with a total of 20 Texas cities ranking below that section of the report.

For 2026, Dallas plummeted as the second-worst housing market for first-time homebuyers in Texas, ranking No. 233 nationally. Dallas' real estate market is the 60th best in the U.S., but its poor quality of life and affordability scores — No. 248 and No. 252, respectively — significantly brought down the city's overall performance.

This is how WalletHub ranked first-time homebuyer appeal across other cities in North Texas:

• No. 106 – Plano
• No. 110 – Grand Prairie
• No. 111 – Denton
• No. 130 – Fort Worth
• No. 134 – Frisco
• No. 148 – Allen
• No. 170 – Richardson
• No. 177 – Garland
• No. 184 – Arlington
• No. 189 – Irving
• No. 194 – Carrollton
• No. 202 — Mesquite

Laredo (No. 200), San Antonio (No. 208), and Houston (No. 271) join Mesquite and Dallas as the five worst housing markets for first-time buyers in Texas.

First-time buyers across the country are entering the housing market at a difficult time, the report says. The National Association of Realtors reported the share of first-time homebuyers sank to an all-time low in 2025, to 21 percent, whereas the historic national average is 40 percent.

"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report's author wrote. "People willing and able to invest in a house this year must balance what they want and need with what they can afford. Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage."