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Best Cities for Starter Homes

With depressed prices across America’s real estate market, many first time home buyers are in a position to purchase a home that will rise in value over the long term. But since every local market is different, some places are significantly better than others for starter homes.

To understand the country’s best cities for first time buyers, real estate website Zillow.comanalyzed data from 125 local markets, comparing median home values, average mortgage payments as a percentage of household income (affordability) and improving trends in home prices.

In addition to the housing data, the unemployment rate and overall cost of living was taken into account, with cost of living data from demographer Bert Sperling’s Best Places, which uses 100 to denote the national average. For example, if a city has a cost of living of 90, it costs a resident 10% less to live in the area, compared to the country as a whole.

These cities are all highly affordable when average incomes are taken into account, and also have an employment landscape that is much more favorable than the rest of the country, making them prime locations for those looking to buy their first home.

So, what are the best US cities for starter homes? Click ahead to find out!

By Paul ToscanoPosted 16 Sept 2010

Source: Zillow.com || Photo: Thierry Dosogne | Stone | Getty Images