Go Midwest Young Home Buyer: Gen Z’s Top Housing Markets

The latest home buying generation

Gen Zers are hitting the ages and life events that typically predicate a home purchase.

Unfortunately, the group — born between 1997 and 2012 — must grapple with a tough marketplace of high prices and mortgage rates, coupled with low (but improving) for-sale inventory.

Although, some cities give Gen Z better affordability and chances at homeownership.

Look to the Heartland

The housing affordability crisis stops many would-be home buyers from entering the purchase market.

While you can (and should) apply for financial assistance programs, the median home sales price grew 44.1% over the last five years, making it hard for the average person to keep up. This rings especially true for younger borrowers since they’ve had less time to save and the likelihood of higher debt loads, relegating some to explore alternative paths to homeownership.

“Many Gen Z home buyers are single, but about 45% of the applicants from this cohort had co-applicants in 2024,” said Archana Pradhan, principal economist at CoreLogic. “These co-buyers may include friends involved in co-living arrangements or parents who are co-signing. Recent studies indicate that Gen Z buyers are open to purchasing properties with friends.”

As they age into their later 20’s, Gen Zers occupy a larger share of overall home buyers. The generation accounted for 13% of home-purchase applications in 2024, up from 10% in 2023, according to CoreLogic.

Exorbitant housing markets deter prospective Gen Z buyers. Among the 100 largest metropolitan areas by population, California cities had the lowest percentage of Gen Z applicants, with 4% in San Jose and San Francisco, 5% in Oxnard, and 6% in Los Angeles. Honolulu and Bridgeport, Conn., also had 6% shares.

Some places, however, boast higher percentages of potential Gen Z homeowners due to their lower prices relative to the rest of the U.S.

“Lower median home prices in the Midwest may be empowering Gen Zers to purchase homes in Midwestern states,” Pradhan said. “Affordability in these areas is pronounced when compared to the rest of the country: The median house price in North Dakota was below $250,000 in 2024, while the national median was approximately $332,000.”

Below are the top 10 metro areas by Gen Z home purchase applications, according to CoreLogic:

10. Wichita, Kansas

2024 median home price: $224,460
Share of Gen Z home purchase applicants: 19%

9. Jackson, Mississippi

2024 median home price: $274,629
Share of Gen Z home purchase applicants: 19%

8. Cincinnati, Ohio

2024 median home price: $255,162
Share of Gen Z home purchase applicants: 19%

7. Birmingham, Alabama

2024 median home price: $185,087
Share of Gen Z home purchase applicants: 19%

6. Little Rock, Arkansas

2024 median home price: $196,659
Share of Gen Z home purchase applicants: 19%

5. Grand Rapids, Michigan

2024 median home price: $305,764
Share of Gen Z home purchase applicants: 20%

4. Dayton, Ohio

2024 median home price: $183,788
Share of Gen Z home purchase applicants: 20%

3. Youngstown, Ohio

2024 median home price: $136,040
Share of Gen Z home purchase applicants: 20%

2. Omaha, Nebraska

2024 median home price: $274,400
Share of Gen Z home purchase applicants: 21%

1. Des Moines, Iowa

2024 median home price: $267,594
Share of Gen Z home purchase applicants: 21%

The bottom line

Younger generations face a less accessible housing market than in past decades due to high prices and few starter-home options.

But some metro areas provide more affordable paths for Gen Z home buyers. Since competition is high and budgets are limited, be as prepared as possible, learn how to shop for interest rates and negotiate with the seller.

If you’re ready to become a homeowner, talk to a local lender today.