The Midwest is gaining traction as a desirable location for homeownership, with housing costs at least 30% lower than in major coastal cities like New York City and Los Angeles.
According to a July 2025 analysis by ConsumerAffairs, using data from the U.S. Census Bureau and the Federal Financial Institutions Examination Council (FFIEC), seven of the ten most accessible metros for young homeowners are located in the Midwest.
The Midwest cities with the highest rates of homeownership among those under 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%) and Akron, Ohio (14.2%).
Zillow identifies Minneapolis as one of the most affordable places to live, alongside other Midwest cities such as St. Louis, Detroit, Indianapolis, Cleveland, Cincinnati, and Kansas City. In these cities, at least half of the homes for sale are considered affordable, meaning housing costs consume less than 30% of a typical household’s budget.
Median home prices in many Midwest cities range from $200,000 to $275,000, while the national median has surpassed $400,000. Realtor Danielle Andrews of Realty One Group Next Generation noted this price difference could reduce monthly housing costs by 30% to 50%, even before considering lower property taxes and insurance.
Why Gen Z is leaving the coasts for the Midwest
The shift comes as many professionals, after relocating during the pandemic, are finding that returning to office work combined with rising housing costs makes previously attractive locations financially unsustainable.
Andrews has observed Gen Z buyers—particularly remote workers and young professionals—leaving more expensive areas like Florida in search of more affordable housing. “For many, it’s not just about cheaper homes, but about being able to build wealth earlier without drowning in overhead,” she said.
A Realtor.com analysis from August 2025 indicated that suburban zip codes in the Midwest are gaining popularity, driven by a combination of lifestyle appeal, relative affordability, and proximity to economic centers. Realtor.com chief economist Danielle Hale stated that these areas attract buyers “looking for relief without sacrificing access to jobs and amenities.”
Realtor.com identified Ballwin, Missouri; Strongsville, Ohio; and Bexley, Ohio, as three of the ten hottest zip codes nationally, noting that while prices in these cities are higher than their respective metro areas, they remain moderate on a national scale.
Despite rising home prices, the Midwest remains one of the most affordable regions for homebuyers. Detroit currently has the lowest median sales price of any major metro at $80,000, while Cleveland’s median is approximately $125,500—both less than half the national median.
“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.”
Frequently Asked Questions
What percentage of interstate movers were Gen Z and millennials?
Gen Z and millennials made up nearly 30% of all interstate movers, according to a statistic cited by Danielle Andrews.
How much cheaper are homes in the Midwest compared to the national median?
Median home prices in many Midwest cities hover between $200,000 and $275,000, while the national median has crossed $400,000.
Which cities were identified by Realtor.com as “hot” zip codes in the Midwest?
Ballwin, Missouri; Strongsville, Ohio; and Bexley, Ohio were identified by Realtor.com as three of the ten hottest zip codes nationally.
As the Midwest continues to offer a more attainable path to homeownership, will this trend accelerate the demographic shift away from traditionally expensive coastal markets?
Keep reading