Where Gen Z buyers are finding affordable homes
In several metros in the Midwest and South, Gen Z accounted for a fifth of the mortgage applicants. Home prices in those markets were typically below $300K.
Key points:
- According to a new CoreLogic report, members of Generation Z are finding places to buy homes despite the high cost of housing today.
- The Midwest offers some of the best opportunities, with Des Moines and Omaha leading the pack among cities with the highest share of young buyers.
- Most states with a high percentage of Gen Z mortgage applications had median home prices below $315,000, with a few exceptions.
Even as home sales fell to levels not seen since the 90s, the median price of homes sold in 2024 hit a record high of $407,500. For many Gen Zers, that puts homeownership out of reach: The median weekly income for people aged 20 to 24 is just $784, according to the Bureau of Labor Statistics — and that doesn't go far enough in most areas to cover a mortgage, particularly with interest rates still elevated.
But there are still some affordable markets out there. A new report from CoreLogic has revealed the top 10 metros where Gen Z buyers can afford to purchase a home, even while their earning potential is just starting to ramp up. These areas have median home prices ranging from $136,040 to $305,764 — well below the national median.
The Midwest is best for young buyers
In several metros, Gen Zers accounted for roughly a fifth of home-purchase applicants, suggesting that those areas are more accessible to younger buyers.
Of the top 10 cities with the highest share of Gen Z mortgage applicants in 2024, five were in the Midwest, with Des Moines, Iowa, and Omaha, Nebraska, leading the pack. In those two cities, 21% of mortgage applications were submitted by Gen Zers, the highest percentage among all metros included in the survey.
Median home prices in Des Moines and Omaha were $267,594 and $274,400, respectively, according to CoreLogic. By comparison, Hawaii and the District of Columbia — where median home prices exceed $600,000 — had the lowest share of young buyers. Just 6% of applicants in Hawaii and 7% of applicants in D.C. were from the Gen Z cohort.
Areas with more Gen Z buyers have below-median prices
The 10 metros with the highest share of Gen Z mortgage applicants were all relatively affordable; in nine of the 10 cities, the median home price was less than $300,000 in 2024, according to CoreLogic — more than $100,000 below the national median.
While Des Moines and Omaha had the most Gen Z buyers, two Ohio cities — Youngstown and Dayton, where Gen Zers made up 20% of purchase applicants — had the lowest median home prices at $136,040 and $183,788, respectively.
Gen Z also accounted for 20% of the home-purchase applications in Grand Rapids, Michigan, despite the higher median price tag of $305,764.
Several cities in the South also appear to attract younger buyers. Other metros on the top 10 list were located in Alabama, Arkansas, Mississippi and Kansas.
Gen Z mortgage share versus affordability
The CoreLogic survey found that Gen Z tends to be more present in more affordable markets, but not exclusively so. This could mean that in some markets where Gen Zers are shopping for homes, better income opportunities can offset the higher prices. It's also possible that these markets have more starter homes available, which median home prices don't always reflect well.
When broken down by state, the highest share of Gen Z mortgage applications were in North Dakota (23%), with a median home price of $249,789 — not in West Virginia (21%), despite a much lower median sale price of $161,857.
Still, states with Gen Z application shares of 15% or more tend to have median sales prices of $315,000 or less, with the exceptions of Utah (16%), Idaho (16%), and Montana (16%), where median prices are near or above $400,000.
Slowing price growth may create more opportunities in 2025
Even in areas with a lower cost of living, rising home prices have kept many Gen Zers out of the home purchase market, so it's no surprise that they cite housing affordability as a key concern. But the latest data indicates that price growth is easing, which could help younger buyers catch up.
"Home prices have remained flat since the housing market began seeing slower activity this past summer," wrote Dr. Selma Hepp, Chief Economist for CoreLogic, in the February 2025 U.S. Home Price Insights Report. She acknowledged that prices, and price growth, vary considerably by region, but concludes that, "going forward, with inventories slowly improving and mortgage rates remaining elevated, forecasts suggest a smaller overall increase in prices in 2025."