Buying Your First Home? How Minneapolis, Saint Paul Rank

MINNEAPOLIS-SAINT PAUL, MN — A new report has good news for renters. Minneapolis and Saint Paul are some of the better cities in the country for first-time home buyers.

The personal finance website WalletHub compared 300 cities based on more than two dozen key indicators, including market attractiveness, affordability and quality of life. Overall, Minneapolis earned a score of 59.96 out of 100.

Here’s are the rankings for Minneapolis (ranked among large cities)

• Overall: 54th
• Affordability: 127
• Real estate market: 80
• Quality of life: 66

Here’s are the rankings for Saint Paul (ranked among mid-size cities)

• Overall: 74th
• Affordability: 99
• Real estate market: 154
• Quality of life: 71

The authors said 38 percent of all single-family home purchases last year were made by first-time buyers. When looking for a home, buyers should carefully consider the home’s location as much as its features.

“If the neighborhood is unpleasant, it can sour the experience of a great home,” the authors wrote. “Potential buyers may want to narrow their search down to an area with a good reputation before getting into housing details.”

Here are the top 10 cities in America and their overall scores:

1. Broken Arrow, Oklahoma; 67.09
2. Tampa, Florida; 65.79
3. Centennial, Colorado; 64.74
4. Boise, Idaho; 64.69
5. Grand Rapids, Michigan; 64.65
6. Thornton, Colorado; 64.49
7. Frisco, Texas; 64.26
8. McKinney, Texas; 64.26
9. Cary, North Carolina; 64.03
10. Gilbert, Arizona; 63.98

And you may want to rethink things if you’re looking for your first home in Berkeley, California, or Detroit, Michigan. The two cities ranked 300th and 299th respectively. Flint, Michigan, and San Francisco and San Mateo, both in California, rounded out the bottom five cities with scores in the mid 30s.

Akron and Toledo in Ohio can claim the most affordable housing, the report found, while Berkeley and San Mateo were the least affordable. Meanwhile, Laredo, Texas, and Flint had the lowest cost of living, while Sunnyvale and Fremont — both in California — had the highest.

When ranking the cities, WalletHub gave equal weight to affordability, real-estate market and quality of life.

The main factor in the affordability category was housing affordability, which received a triple weight. It was calculated by dividing the median housing price by the median yearly household income.

The primary factors in the real-estate market category were the rent-to-price ratio and median home-price appreciation.

The quality of local schools received a double weight in the quality of life category, which was the highest.

WalletHub used data 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, FBI, Insurance Information Institute, AreaVibes and Renwood RealtyTrac, as well as WalletHub’s own research.

Click here to see the complete rankings.

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