Gen Z faces a tough housing market, but affordable cities like Des Moines, Detroit, and Pittsburgh offer hope. These metros provide lower home prices, reasonable down payments, and growing job markets, ideal for first-time buyers. This article explores seven cities where Gen Z can achieve homeownership, highlighting key metrics like median home prices and cost-of-living advantages.
Top Affordable Cities for Gen Z Homebuyers
1. Des Moines, IA
Des Moines tops the list with a median home price of $267,594, 24% below the national median of $332,000. CoreLogic reports that 21% of home purchase applications in 2024 came from Gen Z, driven by affordability and a strong job market. The city’s low cost of living and ample inventory make it a hotspot for young buyers.
2. Omaha, NE
Omaha ties with Des Moines, with 21% of 2024 mortgage applications from Gen Z. The median home price is around $250,000, significantly lower than coastal markets. A robust economy, with companies like Berkshire Hathaway headquartered here, supports job growth, making it attractive for first-time buyers seeking stability.
3. Detroit, MI
Detroit stands out with the lowest down payment-to-income ratio (0.55), meaning Gen Zers need just half their annual income for a 20% down payment. The median home price is approximately $150,000, and the price-to-rent ratio (4.61) favors buying over renting. Despite past economic challenges, Detroit’s affordability draws young buyers.
4. Pittsburgh, PA
Pittsburgh leads with nearly 48% of new mortgages going to buyers under 35, according to Redfin. Median home prices hover around $200,000, and the city offers a 4:1 inventory-to-buyer ratio. Its growing tech and healthcare sectors provide job opportunities, making it a prime choice for Gen Z.
5. Toledo, OH
Toledo’s median home price is $150,000, with a down payment-to-income ratio of 0.77. Zillow ranks it high for first-time buyers due to a 5:1 inventory-to-buyer ratio and 23% of listings featuring price cuts. The low cost of living, 27.4% below the national average, enhances its appeal.
6. St. Louis, MO
St. Louis boasts a median home price of $200,000 and a 4:1 inventory-to-buyer ratio, per Redfin. The city’s affordability, combined with attractions like the Gateway Arch and a strong corporate presence, makes it ideal for Gen Z. Hybrid and remote work options allow buyers to live comfortably outside the city center.
7. Fort Wayne, IN
Fort Wayne scores high for Gen Z, with a median home price of $180,000 and low down payment requirements. SmartAsset and CoreLogic highlight its affordability and inventory, with homes selling quickly due to demand. The city’s growing economy and low unemployment rate make it a practical choice for young buyers.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a financial advisor before making homebuying decisions. Data is sourced from CoreLogic, Redfin, SmartAsset, Zillow, and Realtor.com.
