Where to buy a home for the first time boils down to the probability of value appreciation, the neighborhood’s current amenities, and proximity to high-quality schools and jobs. According to a recent study conducted by Chicago Magazine using information from Midwest Real Estate Data (MRED), first-time homebuyers may need to venture outside of the city’s center to find a home.

Looking at neighborhoods within the city limits and nearby suburbs, Chicago Magazine found Niles, Des Plaines, and Melrose Park to be the three best Chicago-area suburbs for first-time buyers. Norwood Park, Rogers Park, and South Shore are the best urban neighborhoods for first-time buyers.

With a median home price tag of $296,000, Niles homes have increased in value by seven percent since 2015 despite being 26 percent behind the area’s 2006 peak.

Niles Police Department / photo by Vniles / CC BY-SA

The community is an even better fit for buyers looking to put a little bit of elbow grease into a property. While the near northwest suburb is seeing a shift in older residents moving out and downsizing, the opportunity opens up for first-time buyers who want to renovate a home priced under $300,000.

According to AreaVibes, Niles is considered extremely livable with a livability score of 80, which factors local features such as home prices, employment, quality of education, weather, and crime. Niles ranks nine points higher than the state’s overall score.

The community gained high regards for its local amenities. The village’s Arts and Culture Master Plan, which is currently under development, and Touhy Corridor redevelopment plan are indicators that entertainment and dining options are expected to grow. According to the Village of Niles website, the Touhy Corridor plan is slated to promote development of a downtown center around the Leaning Tower in the Touhy Triangle that is pedestrian-friendly to foster a stronger sense of community.

Melrose Park and Des Plaines also stood out as ideal communities for first-time homebuyers. Melrose Park has seen its median home price increase a whopping 14 percent since 2015, although it’s still 36 percent lower than the 2006 peak. Des Plaines is a little slower moving as of recently with a three percent uptick from 2015 to a median house sale price of $250,000. Home sale prices in Des Plaines, however, have bounced back from the pre-recession peak the strongest of the three communities listed.