Gen Z Drives Midwest Housing Shift as Prices Stay 30% Below Coastal Markets

Younger generations are increasingly choosing the Midwest as a more affordable and viable option for homeownership, with housing costs in these markets up to 30% lower than in major coastal cities such as New York and Los Angeles [1]. This shift is driven by a combination of lower median home prices, reduced cost of living, and the desire for financial stability. Many young buyers are opting for cities like Omaha, Grand Rapids, and Des Moines, where home prices are significantly more accessible than in high-cost coastal markets [1].

According to a recent analysis by ConsumerAffairs, seven out of the 10 most accessible metropolitan areas for young homeowners are located in the Midwest [1]. These include Omaha, Nebraska (18.2% of homeowners under 35), Grand Rapids, Michigan (21.1%), and Des Moines, Iowa (19.8%). These cities not only offer lower housing costs but also better affordability ratios—where housing expenses account for less than 30% of a household’s budget—as reported by Zillow [1].

The median home price in many Midwest cities is around $200,000 to $275,000, compared to over $400,000 nationally. A realtor with Realty One Group Next Generation explained that this price gap can reduce monthly housing costs by 30% to 50%, before even considering lower property taxes and insurance [1]. This affordability is particularly attractive to Gen Z buyers, who are looking to build wealth earlier in life without being burdened by high overhead [1].

The trend is further supported by the rise in interest in suburban ZIP codes across the Midwest. According to Realtor.com, three of the 10 hottest ZIP codes for homebuyers are in the Midwest, including Ballwin, Missouri, Strongsville, Ohio, and Bexley, Ohio [1]. While these areas have higher prices than their surrounding metro regions, they remain relatively moderate when compared to the national average. The demand is fueled by buyers from high-cost areas seeking a balance between affordability and access to jobs and amenities [1].

Danielle Hale, Chief Economist at Realtor.com, noted that the Midwest is becoming a top destination for buyers looking to escape rising housing costs elsewhere. “The Northeast and Midwest dominate, driven by buyers from high-cost metros looking for relief without sacrificing access to jobs and amenities,” she stated [1]. This movement is also supported by the availability of newer homes in many suburban areas, meeting the preferences of today’s homebuyers [1].

Redfin data further reinforces the affordability of the Midwest as a homebuying region. Cities like Detroit and Cleveland have median home prices of $180,000 and $217,000, respectively—roughly half of the national median. These figures make the Midwest one of the most attractive regions for Gen Z homebuyers who are redefining what it means to achieve financial success [1].

Danielle Andrews, a realtor with Realty One Group Next Generation, emphasized that the Midwest offers more than just cheaper homes. The cost of essentials like groceries, gas, and healthcare is better aligned with local wages, allowing young buyers to not only survive but thrive [1]. “The Midwest is no longer just affordable: It’s aspirational for a generation redefining success,” she added [1].

This migration trend is also reflected in broader demographic shifts. A StorageCafe analysis found that nearly 30% of all interstate movers are Gen Z and millennial buyers, with states like Indiana and Wisconsin experiencing some of the largest gains [1]. These movements are largely driven by remote workers and young professionals seeking more affordable places to live without sacrificing job opportunities [1].

As housing costs in high-cost coastal and southern cities continue to rise, the Midwest is emerging as a key alternative for younger buyers who prioritize affordability, financial stability, and long-term value [1].

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[1] Gen Zers are flocking to these Midwest housing markets where homes are about 30% cheaper than the coasts. (https://fortune.com/2025/08/05/gen-z-affordable-housing-midwest-us-home-prices-cheaper/)