Neighbors Bank Identifies Best Cities for First-Time Buyers

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Neighbors Bank, Columbia, Mo., released a new analysis identifying the best cities for first-time homebuyers in 2026.

Topping the list was Peoria, Ill., where the median home purchase price is $161,868, the median monthly housing cost is $1,492 and housing cost as a percentage of residents’ income is 25%. The central Illinois city also scored well on quality-of-life metrics. Combined with the relatively low cost of living, that placed it at the top of the list.

In order to determine its rankings of the best cities for first-time buyers, Neighbors Bank weighed a number of metrics for U.S. cities with populations over 115,000 under two broad categories: affordability and quality of life.

In addition to factoring in total monthly housing costs, the analysis looked at broader cost-of-living expenses, such as utilities, food, transportation and health care. For quality of life, metrics analyzed included crime rates, unemployment rates, commutes, childcare costs, home appreciation potential and access to entertainment.

No. 2 was Fort Wayne, Ind., where the median home purchase price is $246,963, the median monthly housing cost is $1,880 and the housing cost as a percentage of income is 33%.

No. 3 was Pittsburgh, No. 4 was South Bend, Ind., and No. 5 was Davenport, Iowa.

Rounding out the top 10 were Rockford, Ill., Wichita, Kan., Toledo, Ohio, Lansing, Mich., and Wichita Falls, Texas.

“Affordability was an important factor, but it wasn’t the only thing we looked at,” said Jake Vehige, president of mortgage lending at Neighbors Bank. “We focused on places where first-time buyers can afford a home and enjoy a strong quality of life that includes entertainment, reasonable commutes and everyday conveniences. This is proof that you don’t have to live in a major coastal metro to live well in 2026.”