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new CoreLogic report reveals that Generation Z is finding ways to buy homes despite the high cost of housing. 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.
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, this 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.
However, 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.
The Midwest is particularly attractive 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 and Omaha leading the pack.
Median home prices in these two cities were $267,594 and $274,400, respectively. By comparison, Hawaii and the District of Columbia had the lowest share of young buyers, with just 6% and 7% of applicants from Gen Z, respectively.
The 10 metros with the highest share of Gen Z mortgage applicants were all relatively affordable, with median home prices below $300,000 in nine out of ten cities. While Des Moines and Omaha had the most Gen Z buyers, two Ohio cities - Youngstown and Dayton - had the lowest median home prices at $136,040 and $183,788, respectively.
Slowly easing price growth may create more opportunities for Gen Z buyers in 2025. According to Dr. Selma Hepp, Chief Economist for CoreLogic, "home prices have remained flat since the housing market began seeing slower activity this past summer." This could help younger buyers catch up and make homeownership more accessible.
