Gen Zers are flocking to these Midwest housing markets where homes are about 30% cheaper than the coasts
Real Estate
Fortune

Gen Zers are flocking to these Midwest housing markets where homes are about 30% cheaper than the coasts

August 5, 2025
10:01 AM
4 min read
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marketswealthfinancialreal estateconstructionmarket cyclesseasonal analysiseconomic

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Seven of the 10 most affordable metros for young homeowners are in the Midwest.

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4 min read

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real estate

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August 5, 2025

10:01 AM

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Fortune

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marketswealthfinancialreal estateconstructionmarket cyclesseasonal analysiseconomic

Real Estate·HousingGen Zers are flocking to these Midwest housing where s are 30% cheaper than the coastsBy Sydney LakeBy Sydney LakeAssociate EditorSydney LakeAssociate EditorSydney Lake is an associate editor at Fortune, where she writes and edits news for the publication's global news desk.SEE FULL BIO Houses in Oakwood, a small town in Montgomery County, Ohio.Getty ImagesYounger generations are looking to the Midwest for ownership due to the region’s significantly lower housing costs compared to major coastal cities

Many Midwest metros have median prices well below the national average, while also offering a lower cost of living

As a result, some Midwest cities have higher rates of young owners

Younger generations are typically associated with wanting to a big-city lifestyle, but the high cost of housing on the coasts is driving Gen Z to consider other options

The Midwest is becoming a more attractive place to plant roots, considering housing costs there can be at least 30% cheaper than living in major coastal metros New York City or Los Angeles

In fact, seven out of the 10 most accessible metros for young owners are in the Midwest, according to a ConsumerAffairs’ analysis of U.S

Census Bureau and Federal Financial Institutions Examination Council (FFIEC) data published July 29

The Midwest cities with the highest rates of ownership under age 35 include: Omaha, Nebraska (18.2%) Grand Rapids, Michigan (21.1%) Des Moines, Iowa (19.8%) Wichita, Kansas (18.4%) Cincinnati, Ohio (17%) Minneapolis, Minnesota (16.5%) Akron, Ohio (14.2%) Minneapolis is also considered as one of the most affordable places to , according to Zillow, along with other Midwest cities St

Louis, Detroit, Indianapolis, Cleveland, Cincinnati, and Kansas City

All of these are cities where half or more of the s for sale are considered affordable, according to Zillow, meaning housing consumes less than 30% of a typical household’s budget

Median prices in many Midwest cities hover around $200,000 to $275,000, while the national median has crossed $400,000, Danielle Andrews, a realtor with Realty One Group Next Generation, told Fortune

That price gap can cut monthly housing costs by 30% to 50%, even before factoring in lower perty taxes and insurance, she added

Why Gen Z is moving During the pandemic, many fessionals moved to locations with more appealing weather and amenities while working from

But now that many workers have been forced back to the office and housing costs have continued to rise, those cities don’t always make financial sense for owners anymore

Andrews said she’s worked with several Gen Z buyers—especially remote workers and young fessionals—who are leaving higher-cost areas Florida for more affordable housing. “For many, it’s not just cheaper s, but being able to build wealth earlier without drowning in overhead,” Andrews said

She also cited a StorageCafe statistic showing Gen Z and millennials made up nearly 30% of all interstate movers, with states Indiana and Wisconsin seeing some of the biggest gains

A Realtor.com analysis published Tuesday also shows suburban ZIP codes in the Midwest are heating up in 2025, meaning they’re getting attention through a mix of lifestyle appeal, relative affordability, and strong ties to nearby economic hubs. “The Northeast and Midwest dominate, driven by buyers from high-cost metros looking for relief without sacrificing access to jobs and amenities,” Realtor.com Chief Economist Danielle Hale said in a statement. “Many of these neighborhoods also offer newer s than the surrounding areas, highlighting the critical role of new and infill construction in meeting today’s buyer demand—even in a tough market.” In its analysis of interest in areas that offer more space, more access to jobs, and better value, Realtor.com found that three of the 10 hottest ZIP codes are in the Midwest cities of Ballwin, Mo.; Strongsville, Ohio; and Bexley, Ohio

While these three cities have higher prices than their respective larger metro areas, their price points remain moderate on a national scale

Although prices in the Midwest are rising, the region continues to be the most affordable buying region in the country, according to Redfin

Take Detroit, which has the lowest median sales price of any major metro at $180,000, Redfin data shows, or Cleveland at $217,000

Both of these cities’ median prices are roughly half of the overall U.S. figure. “Importantly, the cost of living [in the Midwest] especially for essentials groceries, gas, and health care, is better aligned with local wages, allowing Gen Z buyers to not just get by—but actually get ahead,” Andrews said. “The Midwest is no longer just affordable: It’s aspirational for a generation redefining success.”Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America

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