While entry-level housing is still available in much of the U.S., in some places the markets have dipped, rather than climbed.
According to Zonda housing data, these 19 cities performed below projections in August of 2025.
Slightly Underperforming Cities
These cities, while not extremely underwhelming, still performed a bit below average. They’re not completely unaffordable, but new buyers seem to be seeking hotter markets.
Charlotte offers a strong job market, particularly in finance and tech, making it a good pick for young professionals starting out. The city continues to experience steady population growth, which supports long-term housing demand and property value appreciation.
Colorado Springs is a more affordable alternative to nearby Denver while still providing access to a solid job market. It's known for its scenic beauty and quality of life, attracting families and first-time buyers. Employment is stable due to a strong military presence and growing tech industry.
Nashville has no state income tax, making it financially attractive for new homebuyers. The local economy is driven by healthcare, tech, and the entertainment industry (particularly music). As the city continues to expand, it offers promising long-term home value growth.
While New York is known for its high cost of living, entry-level buyers can still find opportunities in outer boroughs like the Bronx, Queens, and Staten Island. The city offers unmatched access to a wide variety of jobs across all industries, and owning property here has strong long-term equity potential.
Orlando presents a great opportunity for entry-level buyers thanks to Florida’s lack of state income tax and an economy centered around tourism, healthcare, and tech (and numerous theme parks). Compared to other major Florida cities, it remains relatively affordable, with many new housing developments offering modern options for first-time buyers.
Philadelphia is one of the more affordable large East Coast cities, especially when compared to New York or Washington, D.C. It has a strong employment base in education and healthcare, and there are numerous local and state programs that support first-time homebuyers with financing and down payments.
Phoenix attracts newcomers due to its affordability relative to other Western cities. The city has experienced rapid job growth in sectors like tech and healthcare, and it's become a hub for remote workers. Continued development has created a promising outlook for new homeowners.
Portland's housing market offers solid entry points for new buyers. Known for its eco-conscious culture and outdoor lifestyle, the city also supports a strong job market in green energy, healthcare, and tech. It’s a good choice for buyers seeking both livability and long-term potential.
As a more affordable alternative to the Bay Area, Sacramento attracts many first-time buyers priced out of San Francisco and San Jose. The city has a stable job market centered around government and healthcare, and population growth adds to its long-term housing demand.
While San Jose has one of the highest housing costs in the country, it remains attractive due to high earning potential in the tech industry. Entry-level buyers with access to down payment assistance or equity-sharing programs may find a foothold here.
Tampa combines affordability with strong economic and population growth, making it a solid option for first-time buyers. Florida’s no income tax policy enhances affordability, and the area offers a mix of urban and suburban living with diverse price points, ideal for those entering the housing market.
Significantly Underperforming Cities
These cities missed the mark by a considerable margin, performing well under their projected sales. Other markets in smaller metro areas have drawn new buyers away from more well-known ones, likely seeking more affordable options.
Denver has a robust job market, especially in tech, healthcare, and energy sectors. Additionally, its vibrant outdoor lifestyle and recreational opportunities make it attractive to younger homebuyers seeking a balance between urban living and nature.
Fort Collins offers a more affordable alternative to Denver, with a smaller-town feel and high quality of life. As a college town, it has a steady demand for rentals, which can be a bonus for first-time buyers looking to invest or house-hack. The city is known for good schools, a strong sense of community, and a stable economy, making it a solid long-term choice for new homeowners.
Los Angeles / Orange County, CA
Although known for high housing prices, Los Angeles and Orange County offer a wide range of entry-level options, particularly in outlying neighborhoods and condo markets. The area’s massive job market can make homeownership feasible for those starting their careers. Additionally, long-term appreciation potential in many neighborhoods adds investment appeal.
Reno is becoming a popular destination for entry-level buyers due to its lower housing prices compared to nearby California cities and the absence of state income tax. The city has experienced significant economic growth, with companies boosting local employment. Its smaller size and scenic surroundings also appeal to buyers looking for a quieter lifestyle with access to outdoor recreation.
Salt Lake City offers relative affordability compared to many coastal cities, along with strong population and job growth. It has a reputation for being family-friendly with good public infrastructure. First-time buyers may also benefit from new housing developments in surrounding areas that cater to entry-level price points.
Despite its reputation for sky-high prices, San Francisco has opportunities for entry-level buyers. Additionally, certain urban renewal and development zones offer incentives or newer, lower-cost housing, making the city more accessible than in previous years.
Seattle remains a tech hub with a strong economy, and while single-family homes in central areas may be out of reach, condos and homes in outlying neighborhoods offer more affordable entry points. The city continues to invest in transit infrastructure, which increases accessibility and makes suburban living more viable for newcomers.
Tucson offers a low cost of living, reasonable property taxes, and growing interest from remote workers and retirees. With a warm climate and expanding amenities, Tucson is becoming a go-to spot for those looking to buy their first home without overextending financially.
The Bottom Line
It’s important to note that despite their underperformance, these cities aren’t necessarily bad places to live. They’ve just seen a slowing in their markets, which isn’t an uncommon occurrence.
Despite their poor performance in sales, new buyers looking to put down roots and begin their homeownership journeys can still find the right place for them in any of these cities.
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