buying in the big city

Here's how Dallas ranks among best cities for first-time homebuyers

13103 Halwin Circle, Dallas home for sale

This beautiful home in Dallas is on the market for just under $400,000.

Photo courtesy of Zillow

As Dallas continues rapidly expanding and the local housing market struggles to find its footing, a new WalletHub analysis has revealed it is the 51st best large U.S. city for first-time homebuyers, and the No. 7 best big city in Texas.

WalletHub's study ranked 300 U.S. cities across 22 metrics based on affordability, quality of life, and the status of each city's real estate market, including factors like active listings per capita, homeownership rates for millennials, and more. Cities were ranked overall and based on population size: Large cities with more than 300,000 residents; midsize cities with populations between 150,000-300,000 people; and small cities with fewer than 150,000 people.

Palm Bay, Florida ranked as the No. 1 best housing market for first-time homebuyers regardless of city size. Meanwhile, the report determined Tampa is the best large city for first-time buyers.

Dallas ranked No. 84 in the report's "real estate market" category out of all 300 cities, and it unfortunately didn't earn stellar rankings in the quality of life (No. 253) or affordability (No. 249) categories.

On the bright side, Dallas has the second-highest rate of new home construction in the nation, which should help first-time homebuyers navigate the sea of listings on the market. Additionally, the median sale price for a Dallas home came out to $446,774 at the end of May, according to the Zillow Home Value Index.

In the overall rankings — regardless of city size — Dallas landed as the 237th best place for first-time homebuyers out of all 300 U.S. cities.

13 Dallas-Fort Worth cities ranked higher than Dallas in the overall list, including:

No. 73 – McKinney
No. 98 – Frisco
No. 118 – Grand Prairie
No. 125 – Denton
No. 130 – Allen
No. 132 – Plano
No. 143 – Fort Worth
No. 159 – Carrollton
No. 172 – Richardson
No. 176 – Garland
No. 186 – Arlington
No. 201 – Irving
No. 214 – Mesquite

According to the National Association of Realtors, only 24 percent of all home purchases in the nation were made by first-time buyers in 2024, down from 32 percent in 2023.

"Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years," said WalletHub analyst Chip Lupo. "The best cities for first-time home buyers not only are affordable both in terms of buying a house and living there afterward, but they also have a lot of housing choices as well as low crime rates and good schools."

Elsewhere in the Metroplex, Fort Worth was declared the second-best big Texas for first-time homebuyers, and the 27th best in the large U.S. cities category. Arlington ranked as the fifth best Texas city, and 38th best in the big city category.

Here's how other Texas housing markets fared in the report's ranking of the best large cities for first-time homebuyers:

No. 19 – Austin
No. 31 – El Paso
No. 37 – Corpus Christi
No. 39 – San Antonio
No. 56 – Houston

real estate housing market first time homebuyers wallethub dallas

Hottest Headlines of 2025

Popular suburbs move into Dallas' hottest real estate headlines of 2025

Photo courtesy of City of McKinney

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Editor's note: As the year comes to a close, we look back at the 10 most-read real estate stories in Dallas for 2025 — including new honors for several local suburbs, market trends, and all-important Walmart news. These are the 10 hottest real estate headlines of 2025 in Dallas:

1. Dallas-Fort Worth suburb blooms as No. 1 best place to live in U.S. One Dallas-area city took the top slot on a list of "the 100 Best Places to Live in 2025." The list — from relocation marketing platform Livability.com — put Flower Mound at No. 1 for its appealing size and affordability. The suburb also claimed the No. 7 spot in a ranking of America's most livable small cities.

2. North Dallas neighbor ranks as No. 1 most affordable city in U.S. A Dallas suburb landed on top of a list of the most affordable places to live: McKinney ranked No. 1 based on its relative cost of living and high median household income.

3. Massive mixed-use development coming to key intersection in McKinney. McKinney is getting a new $1.3 billion mixed-use development. Called Long Branch, it will be a 155-acre project at the northwest corner of US-75 and the future 380 bypass, consisting of housing, retail, office, grocery, and hospitality. The development has 80 acres slated for active development, and will unfold over the next decade in four tracts.

4. Dallas-area suburb ranks as 3rd best place to live in Texas in 2025. The Dallas-Fort Worth mid-city of Coppell has been ranked the third best place to live in Texas in 2025 by rankings and review website Niche.com. The survey determined the best places to live in based on crime rates, public school rankings, the local cost of living, job opportunities, and more using data from the U.S. Census Bureau, the FBI, and others.

Coppell, Dallas suburb Coppell was ranked the third-best place to live in Texas for 2025. City of Coppell, TX Municipal Government/Facebook

5. 11 Dallas suburbs soar as fastest-growing U.S. cities in last decade. It's no secret that Dallas-Fort Worth's population is growing faster than most other metros in the U.S., but now several surprising Dallas neighbors have been named among the top 10 fastest-growing suburb nationwide over the last decade. Celina nearly led the nation with an astonishing 314 percent increase in population from 2014 to 2023, according to a growth study by marketplace platform StorageCafe.

6. Dallas neighbor is the No. 1 fastest-growing affordable city in U.S. A national study has declared Texas is home to the most affordable, fast-growing cities in the country, with Dallas suburb Frisco taking the lead at No. 1. Frisco and five more Dallas neighbors ranked high on GoBankingRates.com's list of "50 Most Affordable, Fastest-Growing Cities in 2025."

$Millennials moved to Texas more than any other state in 2019, with Frisco being\na top choice.$ Frisco is the most-affordable, fastest-growing city in the country. Photo by Roger Robinson/Visit Frisco

7. Dallas neighbor beckons movers as top U.S. suburb with small-town feel. Wylie, a city less than 30 miles from downtown Dallas, ranked as the No. 7 most highly sought-after U.S. suburb of 2025 in MoveBuddha's national survey. In addition to being recognized as the 7th most desirable American suburb, Wylie also ranked as the second-most desirable suburb to move to in Texas.

8. 2 Dallas neighbors rank among fastest-growing wealthy suburbs in U.S. Celina and Prosper, two boomtowns north of Dallas, are among the top three fastest growing affluent suburbs in the country. The cities' affluent status was unveiled in a GoBankingRates' study ranking the "30 Fastest-Growing Wealthy Suburbs in America" for 2025.

The Old Celina Park in Celina, Texas Celina is the No. 2 fastest-growing wealthy 'burb in America. Photo courtesy of celina-tx.gov

9. 6 Dallas suburbs make top 10 list of best Texas cities to move to. Advisors at ConsumerAffairs, a customer review and news platform, ranked the 50 most populated Texas cities across five main categories — affordability, safety, economy, health care and education, and quality of life — to determine which were the best places to move to. Each city was given a score out of 100 possible points. Four of the top five best places to move to in Texas are located in Dallas-Fort Worth: Allen (No .1), Frisco (No. 2), Plano (No. 3), and McKinney (No. 4). Two more DFW suburbs, Mansfield (No. 6) and Richardson (No. 10), rounded out the top 10.

10. Booming Celina hits the big time with its first Walmart Supercenter. The city of Celina is getting its first mega Walmart: According to a release, it will be a Walmart Supercenter located at the northwest corner of Preston Road (Highway 289) and the West Outer Loop. The store has been in the works for a few years, but the Celina Economic Development Corporation celebrated the opening in a groundbreaking on April 16.