Top 10 Housing Markets Where Gen Zs Are Buying Homes

Are you a Gen Z-er tired of throwing your hard-earned cash into rent each month, dreaming of owning your own place but feeling like the housing market is a locked door? You're definitely not alone. For our generation, breaking into the housing market can feel like trying to solve a Rubik's Cube blindfolded while riding a unicycle.

Sky-high prices and mortgage rates have made it tough, no doubt about it. But here’s the good news I want to share right away: it's not impossible! In fact, despite the hurdles, Gen Z is making moves and grabbing keys in specific pockets of the country.

If you're wondering where Gen Z can actually buy a home, the answer isn't on the coasts, but rather in the heartland. Keep reading, because I'm about to break down the Top 10 Housing Markets Where Gen Z Can Buy a Home, and reveal why these places are becoming Gen Z hotspots for homeownership.

Top 10 Housing Markets Where Gen Zs Are Buying Homes

Let’s be real, the past few years haven't been a walk in the park for anyone trying to buy a home, especially for us Gen Z folks just starting out. We’ve seen home prices climb faster than our social media feeds blow up, and mortgage rates have been doing their best impression of a rocket launch. It’s enough to make anyone feel like homeownership is just a pipe dream.

But guess what? We’re a resilient bunch! A report from CoreLogic actually shows that Gen Z accounted for 13% of all home purchase applications. That's a pretty significant number, and it's up from the year before! This tells me that even though it’s tough, Gen Z is determined to become homeowners. We’re not giving up on the dream of having our own space. We are adaptable, and we're finding ways to make it work.

The Midwest is Where It's At for Gen Z Homebuyers

Now, where are we seeing the most Gen Z activity in the housing market? The answer might surprise you if you're thinking of the usual big city hubs. Forget about the crazy expensive coastal areas for a minute. The real action for Gen Z homebuyers is happening in the Midwest.

Think about it: coastal cities are amazing, I get it. But they come with a hefty price tag, especially when it comes to housing. For Gen Z, who are often dealing with student loan debt and just starting their careers, affordability is a huge factor. And the Midwest? Well, it offers something those coastal cities often don’t: relative affordability.

The data backs this up. When we look at metro areas with the highest share of Gen Z home purchase applications, they are overwhelmingly located in the Midwest and also some parts of the South. Places like Des Moines, Iowa, and Omaha, Nebraska, topped the list, with a whopping 21% of home purchase applications coming from Gen Z in 2024. Youngstown and Dayton, Ohio, along with Grand Rapids, Michigan, weren't far behind, all hitting 20%. That's a considerable chunk of the homebuying pie!

On the flip side, when you look at the expensive coastal metros like San Jose and San Francisco, California, the percentage of Gen Z homebuyers drops dramatically – to a mere 4% in those markets! It's pretty clear where affordability is pushing Gen Z homebuyers to.

Why the Midwest and South? Affordability, Plain and Simple.

It boils down to one key thing: affordability. The median home prices in the Midwest and South are significantly lower than the national median, and way lower than in coastal cities. For example, in 2024, the national median home price was around $332,000. But in many Midwestern states, you could find homes for well under $250,000. That’s a massive difference, and for a first-time homebuyer, especially someone from Gen Z, that difference can be the deciding factor between owning a home and continuing to rent.

Think about North Dakota, for instance. The median house price there in 2024 was below $250,000. When you compare that to places like California or New York, where median home prices can easily soar past half a million or even a million dollars, it’s no wonder Gen Z is heading to the Midwest and South.

Top 10 Metro Areas Where Gen Z is Buying Homes

Alright, let's get down to the nitty-gritty and look at the specific markets where Gen Z is making waves in homeownership. These are the Top 10 Metro Areas for Gen Z Homebuyers in 2024, based on the share of Gen Z home-purchase applications among the top 100 most populated metro areas. Check out this table:

CBSA Name	Share of Gen Z Home-Purchase Applicants	Median Home Price*
Des Moines-West Des Moines, IA	21%	$267,594
Omaha-Council Bluffs, NE-IA	21%	$274,400
Youngstown-Warren-Boardman, OH-PA	20%	$136,040
Dayton-Kettering, OH	20%	$183,788
Grand Rapids-Kentwood, MI	20%	$305,764
Little Rock-North Little Rock-Conway, AR	19%	$196,659
Birmingham-Hoover, AL	19%	$185,087
Cincinnati, OH	19%	$255,162
Jackson, MS	19%	$274,629
Wichita, KS	19%	$224,460

*Median home price is based on total sales in 2024 (Source: CoreLogic)

As you can see, all these top markets are located in the Midwest and South, and they all boast median home prices below the national average. Places like Youngstown, Ohio, and Dayton, Ohio, offer incredibly affordable options, with median home prices well under $200,000! Even Des Moines and Omaha, while a bit pricier, are still significantly more accessible than many markets across the country.

Gen Z Homebuying: It's Not Just Singles Anymore

Another interesting trend I noticed is that while many Gen Z homebuyers are single, a significant portion – around 45% in 2024 – are applying for mortgages with co-applicants. Who are these co-applicants? Well, it could be partners, but it also might be friends or even parents co-signing.

This really speaks to Gen Z's resourcefulness and willingness to think outside the box. We’re known for our collaborative spirit, and it looks like that’s extending to homebuying. The idea of buying a house with friends to make homeownership more attainable? Gen Z is definitely exploring that option. And with rising costs, it's a smart way to pool resources and share the financial burden. Having parents co-sign is also a way to overcome credit or income hurdles, demonstrating a family effort to support Gen Z’s homeownership dreams.

Looking Ahead: Gen Z and the Housing Market

Even though the housing market can be tough, I'm genuinely optimistic about Gen Z's ability to make their mark. We're adaptable, we're creative, and we're not afraid to look for opportunities in places that might be overlooked by previous generations. The Midwest and South offer a compelling combination of affordability, growing job markets in some areas, and a different pace of life that can be appealing.

Of course, buying a home is a huge decision, no matter where you do it. It's crucial to do your research, get your finances in order, and find a real estate agent who understands your needs and the local market. But for Gen Z-ers who are determined to own a home, these Top 10 Housing Markets offer a real path to achieving that goal.

Don’t let the headlines about unaffordability discourage you. The dream of homeownership is still alive and well for Gen Z – you just might need to look beyond the usual suspects and set your sights on the heartland. I think you might be pleasantly surprised by what you find!