Market Upset

Houston shocks as one of 10 worst big cities for first-time homebuyers

Row of houses in Houston, Houston homes for sale

Houston is the worst Texas city for first-time buyers.

Getty Images

The Houston housing market may not be for everyone. In a surprising turn of events, Houston has flopped to the bottom of a new list of the best U.S. cities for first-time homebuyers.

WalletHub's new study — which analyzes the affordability, quality of life, and real estate market in 300 U.S. cities — ranks Houston No. 271, or the 30th worst city overall in the U.S. to buy your first home. And, when broken down by city size, WalletHub ranks Houston the 9th worst big city for first-time buyers (No. 61 out of 69).

Houston's lack of appeal for first-time buyers is essentially due to its poor affordability and quality of life scores, rather than the state of the city's housing market, according to the report's findings.

H-town ranks 216th out of all 300 U.S. cities for its affordability, and it appears farther down the list for its quality of life, landing 284th nationally. Houston's cost of living, however, is better than most cities, ranking 51st overall.

The city's real estate market ranking is among the top 100 in the U.S., at No. 91, but that wasn't enough to outweigh its less-than-stellar rankings in the other main categories.

Other metrics (where No. 1 is the best and No. 150 is average) that factored into Houston's overall ranking include:

No. 31 – Total home energy cost
No. 77 – Rent-to-price ratio
No. 99 – Median home-price appreciation
No. 148 – Foreclosure rate
No. 246 – Real estate tax rate
No. 270 – Property crime rates

While Houston boasts the lowest Texas ranking on the list, it isn't the only Lone Star city that is less than favorable for first-time buyers. In fact, only one Texas spot — the Dallas suburb of McKinney — lands among the top 100 of the report. A total of 20 Texas cities rank outside the top 100, with Laredo (No. 200), Mesquite (No. 202), San Antonio (No. 208), and Dallas (No. 233) joining Houston as the state's worst.

First-time buyers across the country are entering the housing market at a difficult time, the report says. The National Association of Realtors reported the share of first-time homebuyers sank to an all-time low in 2025, to 21 percent, whereas the historic national average is 40 percent.

"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report's author wrote. "People willing and able to invest in a house this year must balance what they want and need with what they can afford. Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage."

wallethub real estate housing market first time homebuyers houston reports

Made-for-TV listing

Chip and Joanna Gaines list fixed-up Waco mansion for $7.4M

Facebook/Magnolia Realty

A Waco mansion fixed up for TV by Chip and Joanna Gaines is on the market for $7.4 million.

A Waco estate that will star in Chip and Joanna Gaines’ latest TV series, Fixer Upper: Chip Bought a Mansion, has gone on the market for $7.4 million.

The more than 14,000-square-foot mansion sits on a 5.7-acre site at 5305 Hillcrest Dr. that boasts views of Lake Waco. The listing, held by Amanda Nesbitt of the Gaineses’ Magnolia Realty, says the home “will be thoughtfully reimagined to reveal a timeless, more neutral-leaning palette for a future owner.”

Listing photos show the pre-renovation state of the mansion.

The European-style mansion, featuring a red-brick and cast-stone façade, looks similar to luxury homes you’d find in Preston Hollow, Highland Park, and other high-end neighborhoods in the Dallas area.

A light-filled, two-story foyer with a floating staircase and ornate iron banisters greets visitors, as do parquet flooring and stately columns.

Gaines Waco mansion The mansion foyer before the renovation.Facebook/Magnolia Realty

Venturing into the six-year-old home, you’ll find six bedrooms and 11 bathrooms. The first-floor primary suite offers two bathrooms, several closets, and courtyard access. A guest suite comes with a bedroom, bathroom, living area, kitchenette, and private entrance.

Amenities include:

$\u200bGaines Fixer Upper mansion$

Facebook/Magnolia Realty

A Waco mansion fixed up for TV by Chip and Joanna Gaines is on the market for $7.4 million.

Private study
Billiard room
Media room
Wet bar
Wine cellar
Butler’s pantry
Gym with a steam shower

Outside, several covered porches, an outdoor kitchen, an infinity-edge pool, and a pond let residents and visitors soak up nature. A motor court and four garage bays provide ample space for parking.

As part of the Fixer Upper renovations, the home’s architectural details, such as trim, moldings, and millwork, “will be preserved and elevated in order for their craftsmanship to shine,” the listing says.

Gaines Waco mansion The mansion has a splendid view of Lake Waco.Facebook/Magnolia Realty

Meanwhile, the kitchen will be turned into the “central heart” of the mansion, according to the listing.

“Additional design refinements throughout the home will set an elegant, renewed vision for all that Hawkesdene Estate will become,” the listing says.

Fixer Upper: Chip Bought a Mansion, a six-episode series, is scheduled to debut Dec. 27 on the Gaineses’ Magnolia Network and HGTV. New episodes will be available to stream the next day on HBO Max, according to TV Insider.

Chip purchased the mansion three years ago as an investment property, People magazine reported. The series follows the Gaineses as they confront budget challenges and a three-month deadline to sell the property.

“This will be the biggest fixer we’ve ever done,” Joanna says in a clip from the show.

Chip and Joanna recently sold a 136-year-old Waco castle that served as the foundation of another series, Fixer Upper: Welcome Home – The Castle. They listed 6,176-square-foot Cottonland Castle at nearly $2.7 million. The sale price wasn’t disclosed.

chip and joanna fixer upper hgtv luxury mansion texas waco home-for-sale