Davenport is No. 5 on the 2026 Neighbors Bank Best U.S. Cities for First-Time Homebuyers list based on the scenic Mississipipi River city’s available, attainable, affordable housing and wealth of activities and amenities.
“Affordability was an important factor, but it wasn’t the only thing we looked at,” Jake Vehige, president of mortgage lending at Neighbors Bank, said in announcing the rankings on the Neighbors Bank website this morning, Jan. 12.
Mr. Vehige told the QCBJ via email that the bank group’s second annual Best Cities for First-Time Homebuyers highlights cities “where affordability aligns with those realities, and highlights places where first-time homebuyers don’t feel they have to sacrifice quality of life in order to achieve homeownership.”
Such studies can be valuable to communities seeking to attract new residents in what that leading mortgage lender called an improving but still challenging homebuying market.
“This positive recognition underscores that the Quad Cities region is an exceptional place to live,” Visit Quad Cities President and CEO Dave Herrell told the QCBJ today. “Any time one of our communities in the QC is highlighted and shows up on a ‘best of’ list it provides an opportunity to use this in our overall marketing positioning.”
He added “The Quad Cities is an attainable market to visit and live with a quality of life and place that has a lot to offer. The more visibility generated in our communities along with the destination assets that residents and visitors can experience, the better. This is yet another chance and a leverageable moment to share our story.”
Who made the top 10?
Today’s top 10 affordable homebuyers’ list was based on a national analysis by the Columbia, Missouri-based national bank group. The 2026 top cities ranked from No. 1 to 10 by Neighbors Bank are: Peoria, Illinois; Fort Wayne, Indiana; Pittsburgh, Pennsylvania; South Bend, Indiana; Davenport; Rockford, Illinois; Wichita, Kansas; Toledo, Ohio; Lansing, Michigan; and Wichita Falls, Texas. Find out more about each city here.
To compile the roster, the bank group examined small metropolitan cities with populations above 115,000 where total monthly housing costs account for no more than 35% of median household income.
Rankings also were based on other key factors. For example, this year’s top markets “span the Midwest, Great Lakes and parts of the Plains, reflecting a shift toward regions that offer affordability, but don’t sacrifice quality of life,” Mr. Vehige said.
The bank group said it launched the “best of” study in 2025 to reflect the unique circumstances first-time homebuyers face. That includes lower incomes, limited savings and little to no home equity.
In 2026, he said, the list identified mid-sized metros where home prices have stabilized, commutes are manageable, and cost of living pressures are “pockets of opportunity” where first-time buyers can find a realistic path to ownership without sacrificing quality of life.
“Davenport’s median home price ($183,689) was almost half that of the national level for 2025 ($360,727),” Mr. Vehige wrote.
In addition, housing payments as a percentage of income for homes in the city is 28%, making it the third lowest on the mortgage company’s top cities list. “This is particularly notable given the city’s 7.6% home appreciation spike measured from October 2022 to October 2025,” Mr. Vehige added.
City celebrates ranking
Davenport Mayor Jason Gordon – who was sworn in last week – told the QCBJ “We’re proud to see Davenport recognized as a great place for first-time homebuyers. Davenport is a city built on diverse neighborhoods where young professionals can build their families and put down roots. This recognition reflects the opportunity we work to create every day.”
Take, for example, the number of active housing programs in Davenport.
“Clearly there are lots of community partners, assets, and opportunities in Davenport that factor into the desire for homeownership,” said Bruce Berger, Davenport’s director of community and economic development. “Initiatives like DREAM, Extreme DREAM, and down payment assistance programs have also helped in our core heritage neighborhoods.”
Mr. Vehige said Davenport also “stood out for its strong concentration of entertainment and recreational options per capita, including restaurants, performing arts organizations, spectator sports, museums, amusement parks and recreation centers.”
In fact, he added, “This category drove Davenport to the top of the list overall. Compared to other cities on our list, it has the most options for first-time homebuyers looking to keep their calendar full of fun.”
This latest ‘best of’ list joins other recent top cities designations for Davenport. In 2024, for example, it was named No. 43 on U.S. News & World Report 2025-2026 Best Places to Live rankings. Davenport also was the No. 1 best place for millennial homebuyers to live among the Midwest’s largest cities in a 2024 list compiled by The Ascent, an affiliate of The Motley Fool.
In 2022, it was ranked No 1. on the list of Top 10 Best Small Cities for Remote Work, according to researchers at the free virtual work experience platform Forage.
About Neighbors Bank
Neighbors Bank began life as the family-run Clarence State Bank in 1945. In 2018, it was rebranded Neighbors Bank to allow the growing bank group to introduce new loan options, adopt a remote-first culture and intentionally focus on growth.
Today, it has also grown to nearly 300 team members across 26 states. In 2025 it was a Top 3 USDA Lender and recognized as a Best Places to Work by USA Today.
The company said its first-time homebuyers report demonstrates homeownership remains within reach in mid-sized metros, where housing costs align with local incomes and everyday expenses are easier to manage than in major coastal cities.
The bank group compiled the rankings by analyzing cities with populations over 115,000 where total monthly housing costs stay at or below 35% of median household income. The analysis also weighed quality-of-life measures such as crime, employment, commute times, childcare costs, home appreciation and entertainment options.
For example, in addition to housing costs well below the 35% income threshold and its short commute times, Davenport also stood out for its Mississippi River scenery.
DAVENPORT AT A GLANCE
- Median home price: $183,689; median monthly housing cost: $1,680.
- Housing costs remain manageable at 28% of median household income.
- A diversified local economy anchored by healthcare, manufacturing and education supports steady job growth.
- Short commute times, affordable child care and access to Mississippi Riverfront amenities contribute to Davenport’s quality-of-life score.
SOURCE NEIGHBORS BANK
