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.com analyzed 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!
 1. Augusta, Georgia
Zillow median home value: $107,900
Month-over-month change: +0.42%

Avg monthly mortgage payment: $524.17
Mortgage payment as % of income: 14%

Unemployment rate: 9.3%
Cost of living: 77.4

The best US city for starter homes, Augusta has now seen four consecutive months of significant monthly appreciation, but median home prices remain very low, at less than 60% of the national average, providing a good opportunity for first time home buyers.

Although Augusta home prices have decreased 5.63% since this time last year, trends in recent months show significant upward movement, signaling that the city has just come off the bottom.

In addition to having an unemployment rate that is better than most of the nation, Augusta’s cost of living is 22.6% lower than the national average, while home buyers can expect to devote only 14% of their annual income to paying off their mortgage. 
 2. Dayton, Ohio

 3. Tulsa, Oklahoma
Zillow median home value: $117,400
Month-over-month change: +0.29%

Avg monthly mortgage payment: $570.32
Mortgage payment as % of income: 15%

Unemployment rate: 7.5%
Cost of living: 79.3

Tulsa has now seen five consecutive months of monthly appreciation, with year-over-year appreciation at 2.39%. Both unemployment and cost of living are also significantly lower than the national average. 
 4. Akron, Ohio

 5. Spartanburg, South Carolina
Zillow median home value: $105,800
Month-over-month change: +0.26%

Avg monthly mortgage payment: $513.97
Mortgage payment as % of income: 14%

Unemployment rate: 11.8%
Cost of living: 78.4

Spartanburg has seen five consecutive months of monthly appreciation, and although the unemployment rate is at 11.8%, the city’s cost of living and median home values are significantly lower than the national average. First time buyers in this South Carolina city can expect to pay about $514 in monthly mortgage payments. 
 6. Utica, New York

 7. Cleveland, Ohio
Zillow median home value: $120,400
Month-over-month change: +0.55%

Avg monthly mortgage payment: $584.89
Mortgage payment as % of income: 14%

Unemployment rate: 9.3%
Cost of living: 80.7

In Cleveland, there have now been six consecutive months of flat or monthly appreciation, with a positive increase of 0.55% in the most recent month-over-month change. Although unemployment is relatively high compared to other cities on this list, Cleveland’s cost of living is 19.3% lower than the national average. 
 8. Oklahoma City, Oklahoma

 9. Pittsburgh, Pennsylvania

Month-over-month change: +0.81%

Avg monthly mortgage payment: $707.80
Mortgage payment as % of income: 15%

Unemployment rate: 6.3%
Cost of living: 81.5

For home prices in Des Moines, there have now been six consecutive months of flat or monthly appreciation, with values that are about 20% lower than the national average. In addition, the city has an unemployment rate that is almost half the national average and a low overall cost of living.