10 Cities Majority of Gen Z Can Afford
As America’s youngest homebuyers, Gen Z is stepping into the housing market with significant hurdles, such as inflation, a skyrocketing cost of living, and scarce affordable housing options. Making up approximately 21% of the U.S. population, this group of approximately 69.58 million people born between 1997 and 2012 finds the economic landscape challenging for homeownership. While iconic coastal cities are often financially out of reach, hope is not lost. Certain cities across the Midwest and the South emerge as beacons of affordability and opportunity for Gen Z homebuyers.
Midwest and South Lead in Affordability
Analysis by Point2 highlights cities where Gen Z’s homeownership dreams are more feasible. Evaluating factors such as home price-to-income ratio, median sale price variations from 2022 to 2023, housing inventory, percentage of homes selling above list price, days on the market, the homeownership rate among Gen Z, and the unemployment rate yields insights into where young buyers might find their first home within reach.
Top Cities for Gen Z Homebuyers
Among these havens of affordability, Fort Wayne stands out as the premier city for Gen Z buyers. Its outstanding home price-to-income ratio coupled with a low unemployment rate for the younger population carves a path to homeownership that is comparatively easier than in many other U.S. cities.
Not far behind is Corpus Christi, Texas, where the median home price is about five times the median income of a Gen Zer. This ratio, while daunting, is still manageable compared to more expensive markets, making Corpus Christi a promising location for young individuals looking to own property.
Detroit secures the third spot, defying its less favorable rankings in youth unemployment and percentage of homes sold above listing price with a considerable 6.10% decline in home prices. Moreover, Detroit boasts the best home price-to-income ratio and one of the highest homeownership rates among Gen Z (16.7%), signaling strong potential for young buyers.
More Cities Where Gen Z Can Aim for Homeownership
The journey towards homeownership for Gen Z doesn’t stop with the top three cities. There are several other locations across the United States where the dream of owning a home is within closer reach for this generation. These cities vary in size, economy, and location, but they share common attributes such as reasonable home prices relative to income, a decent inventory of available homes, and favorable conditions for first-time buyers.
While the specific names of these additional cities were not highlighted, the message is clear: opportunities for Gen Z to achieve homeownership exist beyond traditional hotspots and expensive coastal areas. By broadening their search and considering areas particularly in the Midwest and South, young buyers can find communities where their homeownership dreams can become a reality despite the broader economic constraints.
Conclusion
The path to homeownership for Gen Z may be fraught with challenges, but it is far from impossible. By focusing on cities that offer more affordable living, lower home prices relative to income, and a supportive economic environment for young homeowners, Gen Z can lay down roots and invest in their futures. As the housing market evolves, staying informed and flexible in the search for a first home will be key for this generation’s success in real estate.
