Laredo ranks near bottom third of cities for first-time homebuyers

August 2, 2026 - 11:50

A new report from WalletHub places Laredo in the lower third of U.S. cities for first-time homebuyers, even though the city scored well in several important categories. The study compared 300 cities across 22 metrics, including housing affordability, real estate market conditions, and quality of life.

Laredo performed strongly in areas like housing costs and down payment requirements, which are often the biggest hurdles for new buyers. The city also ranked well for low property taxes and a relatively short time needed to save for a down payment. Those factors would normally push a city higher in the rankings.

However, the overall score was dragged down by other parts of the market. The study found that Laredo has a lower share of available homes that are affordable for entry-level buyers. The city also struggled with a high percentage of homes sold above their listing price, which adds pressure to buyers who are already working with tight budgets. In addition, the local job market and income growth were not strong enough to offset the housing stress, according to the report.

WalletHub's methodology weighs both market conditions and the broader economy. For Laredo, the weak spots appear in the "real estate market" and "affordability" subcategories, despite the city's solid performance in cost-related metrics. The result is a mid-to-low placement that may surprise locals who see relatively cheap homes compared to national averages.

Still, the report is not all bad news. Laredo's low cost of living and absence of state income tax remain attractive for people looking to buy their first home. But the ranking suggests that first-time buyers in the city may face more competition and fewer affordable options than the raw price tags would suggest. For anyone planning to enter the market here, the study points to the need for careful budgeting and patience.