With housing prices and mortgage rates still at high levels, finding a good place to buy a house in the United States has become a key task for those who want to invest without compromising their finances. Despite a national median price exceeding $400,000 and interest rates approaching 7%, there are cities where buyers can get more value for their money.

A recent SmartAsset study evaluated 180 metropolitan areas in the United States to identify the best cities for first-time buyers. The analysis considered factors such as affordability, available inventory, market competition, and projected home price growth.

Topping the list is McAllen, Texas, a city located in the south of the state near the Mexican border. Its low median sales price of $204,499 and the projection that prices will only increase 0.4% in the next year make it very attractive. Additionally, its local income-to-home value ratio is manageable for many buyers.

Other cities notable for their value include:

2. Lawton, Oklahoma - Median home price is $150,007. 3. Killeen, Texas - Median home price is $253,104. 4. Warner Robins, Georgia - Median home cost is $232,822. 5. Appleton, Wisconsin - Median home price is $296,011. 6. Fayetteville, North Carolina - Median home cost is $255,157. 7. Savannah, Georgia - Median home price is $353,187. 8. Clarksville, Tennessee - Median home price is $289,257. 9. Cape Coral, Florida - Median home cost is $344,037. 10. Muncie, Indiana: Offering one of the most affordable home prices at $152,814.

While its median sales price in Lawton, Oklahoma, is $150,007, even lower than McAllen's, the SmartAsset study evaluates more than just cost. Lawton also features low market competition, greater housing availability, and a positive relationship between local income and property values. However,The difference with the Texas city lies in its low inventory, with considerably fewer properties for sale.

If the focus is solely on affordability, the Midwest stands out. Cities like Peoria and Decatur, Illinois, lead the way in this regard. Also notable are Muncie, Indiana; Cedar Rapids and Davenport, Iowa; and St. Joseph, Missouri, where home prices are among the lowest in the country. However, many of these cities do not appear among the top 10 for first-time buyers, as the study also considers other factors such as inventory and demand.

One of the main difficulties in the current real estate market is the shortage of available homes. Still, some cities offer a more robust inventory, which takes the pressure off buyers. In this regard, Cape Coral, Florida, leads the way with the highest number of available properties per capita, closely followed by Port St. Lucie, also in Florida.

At a time when mortgage rates are far from historic lows, such as 2.65% in January 2021, making an informed decision about where to buy can make a big difference in the total cost of the loan and future quality of life.

For first-time homebuyers, all of the factors analyzed by SmartAsset, such as affordability, available inventory, and housing price growth projections, can be critical when choosing a property. However, also consider your job qualifications and the domestic market, because it will be useless to buy a house that is within your financial means, only to have to leave it soon after to look for better job opportunities.