St. Petersburg Ranks Among Top Cities in the U.S. for First-Time Home Buyers

“Best & Worst Cities for First-Time Home Buyers,” Wallet Hub

By: Adam McCann

July 16, 2018

Buying a home for the first time is an exciting and important milestone for many Americans. Their purchases make up a sizable chunk of the market, too. In 2017, 38% of all U.S. single-family home purchases were made by first-time buyers.

The search for a first home requires careful consideration of a number of factors. Buyers must balance what they want and need with to what they can afford. Often, people begin searching for their dream homes without a realistic idea of market prices, interest rates or even their eligibility to get a mortgage.

Where a home is located is just as important as what features it has. If the neighborhood is unpleasant, it can sour the experience of a great home. Potential buyers may want to narrow their search down to an area with a good reputation before getting into housing details.

To simplify the process, WalletHub compared 300 cities of varying sizes across 27 key indicators of market attractiveness, affordability and quality of life. Our data set ranges from cost of living to real-estate taxes to property-crime rate. Read on for our findings, insight from a panel of experts and a full description of our methodology.

St. Petersburg, Florida

Best Places for First-Time Home Buyers

Overall Rank (1 = Best)	City	Total Score	‘Affordability’ Rank	‘Real-Estate Market’ Rank	‘Quality of Life’ Rank
1	Broken Arrow, OK	67.09	55	26	11
2	Tampa, FL	65.79	139	4	15
3	Centennial, CO	64.74	114	51	7
4	Boise, ID	64.69	19	169	43
5	Grand Rapids, MI	64.65	17	18	142
6	Thornton, CO	64.49	122	40	3
7	Frisco, TX	64.26	152	2	44
8	McKinney, TX	64.26	165	1	42
9	Cary, NC	64.03	16	107	23
10	Gilbert, AZ	63.98	4	12	196
11	Chandler, AZ	63.92	10	32	125
12	Kenosha, WI	63.91	46	138	13
13	Peoria, AZ	63.8	20	10	192
14	Orlando, FL	63.78	180	3	29
15	Overland Park, KS	63.51	154	38	9
16	Allen, TX	63.45	132	8	37
17	Arvada, CO	63.37	147	25	6
18	Roseville, CA	63.07	130	9	33
19	Norman, OK	62.97	83	95	10
20	Greeley, CO	62.95	110	69	4
21	Wilmington, NC	62.71	71	21	95
22	Scottsdale, AZ	62.69	76	47	53
23	Longmont, CO	62.61	150	31	8
24	Charleston, SC	62.57	106	15	83
25	Fort Collins, CO	62.54	156	63	1
26	Murfreesboro, TN	62.07	57	13	203
27	Colorado Springs, CO	61.9	84	57	67
28	Westminster, CO	61.89	124	53	18
29	Cape Coral, FL	61.74	135	5	81
30	Surprise, AZ	61.69	7	37	236
31	Raleigh, NC	61.65	45	82	89
32	Columbus, OH	61.45	15	114	105
33	Madison, WI	61.41	92	104	34
34	Hampton, VA	61.38	5	199	99
35	Pittsburgh, PA	61.37	26	103	104
36	Henderson, NV	61.22	25	45	176
37	Livonia, MI	61.01	9	102	167
38	Chesapeake, VA	60.96	18	117	145
39	Pueblo, CO	60.9	96	14	136
40	Spokane Valley, WA	60.87	51	62	189
41	Augusta, GA	60.83	3	259	256
42	Des Moines, IA	60.83	14	165	78
43	Joliet, IL	60.72	64	224	16
44	Green Bay, WI	60.47	79	187	12
45	Phoenix, AZ	60.41	30	36	219
46	St. Petersburg, FL	60.39	131	43	75
47	Naperville, IL	60.3	89	156	19
48	Dearborn, MI	60.28	43	150	199
49	Lincoln, NE	60.23	181	33	45
50	Roswell, GA	60.17	68	52	182

Methodology

To determine the most favorable housing markets for first-time home buyers, WalletHub compared a sample of 300 U.S. cities (varying in size) across three key dimensions: 1) Affordability, 2) Real-Estate Market and 3) Quality of Life.

We evaluated those dimensions using 27 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for first-time home buyers. Data for metrics marked with an asterisk (*) were available at the state level only.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:

Large cities: More than 300,000 people
Midsize cities: 150,000 to 300,000 people
Small cities: Fewer than 150,000 people

Affordability – Total Points: 33.33

Housing Affordability: Triple Weight (~14.29 Points)
Note: This metric was calculated as follows: Median House Price / Median Annual Household Income.
Average Cost of Homeowner’s Insurance*: Full Weight (~4.76 Points)
Cost of Living: Full Weight (~4.76 Points)
Cost per Square Foot: Full Weight (~4.76 Points)
Note: This metric measures specifically the median list price per average home square footage.
Real-Estate Tax Rate: Full Weight (~4.76 Points)

Real-Estate Market – Total Points: 33.33

Rent-to-Price-Ratio: Double Weight (~4.44 Points)
Housing-Market Health Index: Full Weight (~2.22 Points)
Share of Homes Sold in One Year: Full Weight (~2.22 Points)
Median Home-Price Appreciation: Double Weight (~4.44 Points)
Foreclosure Rate: Full Weight (~2.22 Points)
Share of Mortgage Holders with Negative Equity: Full Weight (~2.22 Points)
Note: This metric measures the proportion of mortgage holders whose balance on mortgage is higher than the value of homes.
Buy vs. Rent Breakeven Horizon: Full Weight (~2.22 Points)
Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
Share of Listings with Price Cuts: Full Weight (~2.22 Points)
Share of Housing Units Built between 2010 and 2016: Full Weight (~2.22 Points)
Building-Permit Activity: Full Weight (~2.22 Points)
Note: This metric measures the number of unit permits pulled per 1,000 residents.
Mortgage Lenders per Capita: Full Weight (~2.22 Points)
Real Estate Agents per Capita: Full Weight (~2.22 Points)
Homeownership Rate for Millennials: Full Weight (~2.22 Points)

Quality of Life – Total Points: 33.33

Recreation-Friendliness: Full Weight (~3.33 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking.
Recession Recovery: Full Weight (~3.33 Points)
Note: This metric is based on WalletHub’s “Most & Least Recession-Recovered Cities” ranking.
Weather: Full Weight (~3.33 Points)
Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
Quality of School System*: Double Weight (~6.67 Points)
Note: This metric is based on WalletHub’s “States with the Best & Worst School Systems” ranking.
Driver-Friendliness: Full Weight (~3.33 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking.
Job Market: Full Weight (~3.33 Points)
Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
Total Home-Energy Cost: Full Weight (~3.33 Points)
Violent-Crime Rate: Full Weight (~3.33 Points)
Property-Crime Rate: Full Weight (~3.33 Points)

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, U.S. Department of Housing and Urban Development, Zillow, Federal Bureau of Investigation, Insurance Information Institute, AreaVibes, Renwood RealtyTrac and WalletHub research.

2018 Best & Worst Cities for First-Time Home Buyers

By: Adam McCann, Financial Writer, Wallet Hub

Source: AreaVibes Inc. https://www.areavibes.com/st.+petersburg-fl/livability/