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 like New York City or Los Angeles.
In fact, seven out of the 10 most accessible metros for young homeowners 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 homeownership 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 live, according to Zillow, along with other Midwest cities like St. Louis, Detroit, Indianapolis, Cleveland, Cincinnati, and Kansas City.
All of these are cities where half or more of the homes for sale are considered affordable, according to Zillow, meaning housing consumes less than 30% of a typical household’s budget.
Median home 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 property taxes and insurance, she added.
Why Gen Z is moving
During the pandemic, many professionals moved to locations with more appealing weather and amenities while working from home. 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 homeowners anymore.
Andrews said she’s worked with several Gen Z buyers—especially remote workers and young professionals—who are leaving higher-cost areas like Florida for more affordable housing.
“For many, it’s not just about cheaper homes, but about 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 like 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 homes 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 home prices in the Midwest are rising, the region continues to be the most affordable homebuying 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 about $217,000. Both of these cities’ median home prices are roughly half of the overall U.S. figure.
“Importantly, the cost of living [in the Midwest] especially for essentials like 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.”
