Reviewed by: Pat Byington
Birmingham ranked 4th best U.S. city for first-time homebuyers
Reading time: 4 minutes
If you’re a first-time homebuyer in 2026, make sure The Magic City is on your list. According to a recent report by Realtor.com, Birmingham is making waves as one of the top places in the country to buy a home for the first time.
Read on to learn why Birmingham earned the #4 spot on Realtor.com’s The Best Markets for First-Time Homebuyers in 2026.
Here are The Best markets for First-Time Homebuyers in 2026
In a recent report from Realtor.com, economists scoured more than 10,000 Census-Designated Places within the 100 largest metro areas in the country to identify the best cities for first-time homebuyers this year. The ranking was based on several factors, including:
- Affordability
- Local amenities
- Housing availability
- Economic health
Realtor.com’s report also took into account factors like commute times, the presence of other young people in the community and the potential for housing appreciation. Based on those criteria, Realtor.com’s top markets for first-time homebuyers are:
- Rochester, NY
- Harrisburg, PA
- Granite City, IL
- Birmingham, AL
- North Little Rock, AR
- Syracuse, NY
- Baltimore, MD
- St. Louis Park, MN
- Pittsburgh, PA
- Garfield Heights, OH
How Birmingham stacks up for first-time homebuyers
In today’s housing market, first-time buyers face many obstacles. Since they’re often early in their careers, first-time buyers tend to earn less than older buyers competing for the same homes. Similarly, established homeowners can utilize their existing home equity towards a down payment on a new home, while first-time buyers need to save up a chunk of cash to purchase their starter home.
It’s no surprise that first-time homebuyers only made up 21% of home purchases last year, while the typical age of a first-time homebuyer shot up to 40 years old—an all-time high.
While homes in the West and the East Coast are out of reach for the average first-time homebuyer, cities in the Northeast, Midwest and South are quite attractive—including The Magic City.
Coming in at #4 on Realtor.com’s list, Birmingham has a median home price of $148,950. As a general rule, a home is considered affordable to a buyer if the monthly mortgage payment is 30% or less of their monthly income.
| Median Listing Price | Median Income for 25- to 34-Year-Olds | Share of Income Spent on Mortgage Payment | |
| Birmingham | $148,950 | $47,647 | 20.8% |
In addition to affordability, Birmingham checks a lot of boxes on Realtor.com’s list. According to the Federal Reserve Bank of St. Louis, housing inventory in the Birmingham-Hoover Metropolitan Area is on the rise, with 4,385 active listings as of November 2025. Jefferson County is experiencing a period of growth, with more than $400M in 13 total economic development projects announced in 2025, bringing roughly 900 new jobs to the area.
Of course, we can’t forget Birmingham’s extensive list of attractive amenities. With an impressive (and growing!) number of parks and trails like Railroad Park and the Red Rock Trail System, unique attractions like the Barber Motorsports Museum, the Birmingham Museum of Art and the Civil Rights Institute, an award-winning culinary scene, one of the top hospital systems in the country, a vibrant downtown and much, much more, Birmingham has something for everyone.
Do you agree with Realtor.com’s list? Why or why not? Tag us @bhamnow to let us know your thoughts!
