5 Phoenix Suburbs Among the Best in the U.S. for First-Time Homebuyers in 2025

By Jeff Hernandez, Realtor & Attorney — The Connie Colla Group at RETSY

When I bought my first home in Arizona back in the early ’90s, the process felt simpler. Prices were more forgiving, interest rates were higher than today’s, but there was less competition.

Fast-forward to 2025, and the landscape for first-time homebuyers has undergone a complete transformation. Inventory is starting to tick upward after years of record lows, but affordability remains a challenge.

That’s why it caught my attention when WalletHub’s 2025 ranking of the best U.S. cities for first-time homebuyers placed five Phoenix suburbs among the nation’s top picks. This isn’t just a feel-good list; it’s based on hard data like home price trends, job market health, school quality, and cost of living. And in a market as dynamic as ours, those factors matter.

Whether you’re a young professional putting down roots or a family making the leap from renting to owning, these findings offer a great starting point for your search.

Why This Ranking Matters in 2025

Buying your first home isn’t just a financial milestone; it’s deeply personal. It’s where life happens, and your choice of city can impact your career, lifestyle, and long-term wealth.

Here’s what the national backdrop looks like:

• First-time buyers now make up about 24% of all home purchases, near a record low, according to the National Association of Realtors.
• The median age of a first-time buyer is 38; higher than it’s ever been.
• Inventory has grown nearly 25% year-over-year in the U.S. as of July 2025, giving buyers more options.
• Mortgage rates, which spiked above 7% last year, have dipped to around 6.63% this August — the lowest since April.

In short, the market is shifting in buyers’ favor, but being strategic about where you buy can make all the difference.

How WalletHub Determined the Best Cities for First-Time Buyers

WalletHub compared 300 U.S. cities across three main categories:

1. Affordability – Includes median home prices, cost of living, property taxes, and insurance.
2. Real Estate Market – Measures things like home price appreciation, the number of new homes, and millennial homeownership rates.
3. Quality of Life – Looks at crime rates, weather, schools, and job opportunities.

I like this approach because it goes beyond price alone. Affordability without quality of life can lead to regret, and a hot market without stability can make it hard to build equity.

The Five Phoenix-Area Standouts in 2025

When I reviewed the list, I wasn’t surprised to see certain names, but a few raised my eyebrows in a good way. Let’s walk through each one, with some local insight from what I’m seeing in the field.

1. Surprise — #4 in the U.S.

If you had told me 20 years ago that Surprise would be one of the best places in the country for first-time buyers, I might have been skeptical. Back then, it was still a rural blip west of Phoenix.

Today, Surprise has grown to over 160,000 residents and boasts one of the strongest real estate markets in America — ranked #1 nationally by WalletHub. You’ll find newer homes, spacious floorplans, and prices that still stretch your dollar compared to Scottsdale or Chandler.

Numbers at a Glance:

• Typical Home Value: around $412,000 (Zillow, July 2025)
• 12-Month Price Change: roughly +1%
• Median Days to Pending: ~28 days

2. Gilbert — #6 in the U.S.

Gilbert has transformed from an agricultural town into one of Arizona’s most desirable suburbs, with a population over 275,000 and a lively, walkable downtown.

WalletHub ranked its real estate market 17th nationally and its affordability 34th. The median household income here is among the highest in the state, which supports its steadily appreciating home values.

Numbers at a Glance:

• Typical Home Value: about $545,000
• 12-Month Price Change: +2%
• Median Days to Pending: ~25 days

3. Chandler — #11 in the U.S.

Chandler’s been a favorite among families for decades, and for good reason. With a population of nearly 280,000, it’s home to a thriving tech sector and excellent schools.

Its affordability ranks 46th nationally, but its balanced market and quality-of-life scores make it a safe bet for long-term value.

Numbers at a Glance:

• Typical Home Value: about $520,000
• 12-Month Price Change: +1.5%
• Median Days to Pending: ~22 days

4. Peoria — #13 in the U.S.

Peoria blends established neighborhoods with new master-planned communities. With around 200,000 residents, it has been steadily developing its downtown area while maintaining suburban appeal.

WalletHub gave Peoria an 11th place national ranking for its real estate market. Affordability is mid-range, and quality-of-life scores are slightly lower; however, for buyers seeking space and newer construction, it’s worth considering.

Numbers at a Glance:

• Typical Home Value: about $470,000
• 12-Month Price Change: +1%
• Median Days to Pending: ~30 days

5. Scottsdale — #21 in the U.S.

This one surprises a lot of people. Scottsdale, known for its luxury homes and resort lifestyle, made WalletHub’s list because of its 15th-ranked real estate market and strong quality-of-life score.

While affordability is lower (ranked 146th nationally), first-time buyers can still enter the market through condos and smaller single-family homes, especially in South Scottsdale.

Numbers at a Glance:

• Typical Home Value: about $835,000 (varies widely)
• 12-Month Price Change: +3%
• Median Days to Pending: ~26 days

What These Rankings Don’t Tell You

While these numbers are valuable, they’re citywide averages. Within each suburb, neighborhoods vary significantly in terms of price, amenities, and even the pace of sales.

Tips for First-Time Buyers in Today’s Market

1. Get Pre-Approved Early — With rates in the mid-6% range, knowing your exact budget helps you act fast.
2. Explore Down Payment Assistance — Arizona offers programs like HOME+Plus and Home in Five, which can cover 3–6% of your down payment if you qualify.
3. Be Open to Nearby Cities — Sometimes moving just a few miles can save you thousands.
4. Consider Long-Term Value — Look for areas with job growth, infrastructure improvements, or upcoming amenities.
5. Work with a Realtor® Who Knows the Area — Local insight can help you find hidden gems and negotiate effectively.

Final Thoughts

The Phoenix metro area continues to shine on the national stage for first-time buyers, offering a variety of communities that balance affordability, market strength, and quality of life.

Whether you’re drawn to the new-home communities of Surprise, the vibrant downtown of Gilbert, the tech-centric neighborhoods of Chandler, the lakeside lifestyle of Peoria, or the culture and prestige of Scottsdale, there’s a place here for you to plant roots.

Buying your first home is a big step; one that deserves careful planning, expert guidance, and a strategy tailored to your goals.

At Jeff Hernandez, Esq., Scottsdale Real Estate Agent & Attorney, I’ve spent years helping clients navigate both the opportunities and the challenges of our unique market. If you’re ready to explore your options in one of these top-ranked cities, call me directly at (602) 550-1114. I’d be honored to guide you every step of the way.