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7 Affordable Cities Gen Z Will Flock to in 2025, Experts Predict

Gen Z accounted for nearly 30% of state-to-state relocations in 2023, with around 2.2 million members moving.

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s the housing market continues to shift, a new wave of movers is emerging: Gen Z. According to recent data, nearly 30% of state-to-state relocations in 2023 were made by members of this generation, with over 2.2 million young people seeking better career opportunities, affordable living, and exciting experiences.

    Experts point out that the allure of coastal cities is waning for Gen Z, who are instead drawn to emerging markets where their dollars stretch further. Among these affordable options, seven cities stand out as particularly attractive to young professionals:

    Tulsa, Oklahoma, remains a hotspot for remote workers, with its incentive program still drawing in young professionals seeking escape from big-city burnout. With an average home value of $200,000 and rent averaging $1,500 per month, Tulsa offers a comfortable balance between affordability and quality of life.

    Toledo, Ohio, is another city that's caught the attention of Gen Zers. "LA or New York City rent is skyrocketing," notes Paul Herskovitz, founder of Discount Lots, "while in Toledo, it's only about $800 per month on average." With a median home price under $150,000 and affordable rentals, Toledo is an attractive option for young people looking to buy or rent.

    Des Moines, Iowa, offers community, walkability, and access to outdoor experiences that Gen Z values. "From the country's longest bike trail system to major events like the Downtown Farmers' Market," says Rick Wanamaker, a Realtor at Iowa Realty, "it's the ideal location for younger generations looking to plant roots." With an average home value of $202,000 and rent averaging $1,500 per month, Des Moines is a great option for those seeking a balanced lifestyle.

    Tallahassee, Florida, boasts a vibrant culture, multiple colleges, and investment opportunities under $250,000. "It's affordable, connected, and full of potential for first-time buyers," says Danielle Andrews, a Realtor with Realty ONE Group Next Generation. With an average home value of around $284,000 and rent averaging $1,500 per month, Tallahassee offers a great balance between affordability and quality of life.

    Chattanooga, Tennessee, has become a magnet for Gen Z freelancers, creators, and tech workers. "Many young people enjoy hiking, an artsy downtown, and this town's affordable housing options," notes YK Kuliev, owner of Fast Home Buyer California. With an average home value of $303,000 and rent averaging just over $1,500 per month, Chattanooga offers a unique blend of affordability and excitement.

    Birmingham, Alabama, is another city that's attracting young buyers with its affordable prices and clear path to equity. "Median home prices under $200,000 still exist," says Todd Stephenson, co-founder of RoofQuotes.com, "and Gen Z buyers aren't hesitating to take on homes that need a few repairs." With an average home value of about $126,000 and rent averaging $1,250 per month, Birmingham is an attractive option for young people looking to buy or rent.

    Grand Rapids, Michigan, offers more job access and urban amenities without the big-city pricing. "A buyer in their twenties can find a home that needs cosmetic work, make those changes over time, and still come out ahead compared to renting in larger markets," says Stephenson. With an average rental price just shy of $1,700 and an average home value of about $275,000, Grand Rapids is a great option for young people seeking a balanced lifestyle.

    As Gen Z continues to shape the housing market, experts note that this generation has different standards when it comes to what they want in a city. They're looking for affordable rent and cost of living, remote job support, thriving local scenes, safe neighborhoods with room to grow, and availability of tiny homes or co-living spaces. As one expert notes, "Gen Z isn't making moves the way millennials did. They're chasing breathing room, side hustle space, and cities where $1,500 a month doesn't get you a shoebox."

Experts predict Gen Z will flock to affordable cities in 2025 globally.