15 US Cities That Are Great For First-Time Home-Buying Millennials

Au revoir San Fran, bonjour Savannah.

Buying a home isn't cheap (to state the obvious), especially when you're young and broke.

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Home-buying is a daunting process that requires saving up for a deposit, borrowing money, committing to a multi-decades-long mortgage, and navigating things like interest rates, lenders, and mortgage insurance. (Scared? Join the club.)

And, in many of the nation's biggest cities, where young people tend to live and work, buying a home in the middle-price tier could cost well over a million dollars (looking at you and your $1.5 million "middle-price tier" of homes, San Francisco).

But in some cities, first-time homebuyers have a slightly easier time, thanks to lower prices, more available inventory, and low unemployment rates.

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To help first-time homebuyers, Realtor.com pulled a list of cities with a population of more than 50,000 that are well suited for young people. These cities were chosen and ranked using criteria that include home affordability and inventory, local unemployment rates, average commute time, a young local population, and a high concentration of places to eat, drink, and be merry.

1. Savannah, Georgia

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Median list price: $289,000

Savannah has more young people than you might think, with 17% of the city's inhabitants aged 25 to 34, according to Realtor.com. And it's not too difficult to see why. Savannah has all the perks of city living — great art, architecture, and infrastructure — paired with the natural beauty of waterways, two adjacent wildlife refuges, and the Atlantic Ocean. 

2. Wilmington, North Carolina

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Median list price: $389,900

It's all about the water at this port city, which has direct access to Wrightsville Beach, strong surf, and a vibrant riverwalk near the historic downtown. Oh, and let's not forget plenty of active real estate listings and well-priced homes.

3. Madison, Wisconsin

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Median list price: $369,900

Around an hour's drive west of Milwaukee is the bustling city of Madison, which sits on an isthmus between Lake Mendota and Lake Monona (I mean...how cool is that?). In addition to easy access to the water, the city has a university, several quality art museums, and 9 miles of pristine trail à la the Capital City State Trail.

4. Champaign, Illinois

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Median list price: $185,000

Set squarely between Chicago, St. Louis, and Indianapolis, this mid-size city offers easy access to the BIG city while maintaining a slower pace of life. Much of the culture and vibrancy revolves around the University of Illinois campus, which is set near downtown and houses the well-loved Krannert Art Museum.

5. Davenport, Iowa

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Median list price: $154,900

In addition to low median home prices, Davenport ranks high for the number of active home listings. Set along the Mississippi River, on the border of Iowa and Illinois, this city has easy access to nature thanks to the stunning Vander Veer Botanical Park, which has walking trails and sits within city limits. Not into the green stuff? Post up at Biaggi's Ristorante Italiano, a locally loved Italian spot.

6. Great Falls, Montana

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Median list price: $275,000

As you might expect from a city in Montana, Great Falls is all about the mountain lifestyle. Here, you'll find freshwater springs ripe for fishing, plenty of green space, and city built around the Missouri River. 

But it isn't just about nature here — the city has good eats and hip watering holes, and homebuyers will love the security of Great Falls' super-low unemployment rate (3.5%, per Realtor.com).

7. Kalamazoo, Michigan

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Median list price: $179,000

This college town in southern Michigan is just under an hour from the shores of Lake Michigan, but once you figure out the city, you won't have much reason to leave. Thanks to Kalamazoo's selection of fairly low home prices, you'll have plenty of extra cash to spend on trying out all the restaurants and bars — we recommend a visit to Principle Food and Drink.

8. Charleston, South Carolina

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Median list price: $648,500

While Charleston has a higher median list price than any other city on this list, it also has the highest number of active listings, making your home search a little easier than it might be in other growing cities. But beyond the housing market, Charleston has a lot to offer, with picturesque cobblestone streets, pastel houses, and a waterfront park and promenade with direct access to the Atlantic.

9. Albany, New York

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Median list price: $229,000

Just two hours north of New York City is the capital city of Albany, where we promise that home prices are much more reasonable. Plus, many of those NYC perks can be found here — a great performing arts scene, plenty of historic sites, and a location right on the Hudson River.

10. Lawrence, Kansas

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Median list price: $305,000

Lawrence has a low unemployment rate and short average commute, two things that can go a long way toward enhancing your quality of life. And if that doesn't do it for you, maybe the city's location by the trail-lined Clinton State Park and beautiful Clinton Lake will do the trick.

11. Hillsboro, Oregon

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Median list price: $530,000

Just west of Portland in the prominent city's metro area is Hillsboro, an often-overlooked suburb with a lot to offer. In addition to being a 20-minute drive from ever-popular Portland, Hillsboro has its own selection of wineries, nature trails, and the impressive Jackson Bottom Wetlands Preserve.

12. West Jordan, Utah

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Median list price: $565,000

This fast-growing suburb of Salt Lake City sits squarely in the mountains, offering easy access to hiking trails, skiing, and even the Great Salt Lake itself. In addition to super-low unemployment rates (2.8%, per Realtor.com) people rave about Bombay House, a local Indian restaurant.

13. Hampton, Virginia

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Median list price: $220,000

Across the bay from Norfolk and Virginia Beach, you'll find homes that are priced well for many first-time homebuyers, direct water access, and a cultural feel that might impress you. Check out the Virginia Air & Space Center, The American Theatre, or one of Hampton's many festivals.

14. Reno, Nevada

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Median list price: $594,999

While home prices aren't cheap, Reno makes up for it with a high rate of availability and mountain view. And if Nevada doesn't sound appealing, keep in mind that Reno is located right on the California border and you can have your feet in Lake Tahoe in a mere 45 minutes. Now that is hard to beat.

15. Cranston, Rhode Island

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Median list price: $329,900

This Providence suburb is just about 15 minutes from the heart of the city, making a commute easy and less daunting. On the weekends, stay local and run it out on the 14.5-mile East Bay Bike Path or play in the Scituate Reservoir.

Do you have any advice for first-time homebuyers? Share your wisdom in the comments!

And for more stories about life and money, check out the rest of our personal finance posts.