Homeownership is a defining milestone, and for Gen Z, it’s a priority. With nearly half of this generation planning to buy homes within the next five years, they are shaping the future of the housing market. While affordability and opportunity are key, certain cities stand out as the best places for young adults to thrive financially and achieve their homeownership dreams.

The Rise of Gen Z Homebuyers

The oldest members of Gen Z, turning 27 this year, are rapidly transitioning into adulthood. According to recent surveys, 18% of this generation already own homes or are married to someone who does. While many still live with family, their aspirations for homeownership remain strong. Cities like Tallahassee, FL, and Madison, WI, lead in Gen Z homeownership, offering affordability and opportunity.

Top Overall Cities for Young Adults

A recent study by MoneyGeek evaluated 138 cities, factoring in young adult income, homeownership rates, student loan burdens, and access to amenities. The findings highlighted five cities where young adults can thrive:

• Salt Lake City, UT
  Median Home Price: $589,900
  • Boasts low federal student loan debt and a thriving job market with a 41% growth in its young adult population over the past decade.
• Abilene, TX
  Median Home Price: $236,900
  • Combines affordability with a growing economy.
• Des Moines, IA
  Median Home Price: $234,900
  • Known for its low cost of living and vibrant downtown scene.
• Boise, ID
  Median Home Price: $529,900
  • Offers outdoor recreation and strong community growth.
• Las Cruces, NM
  Median Home Price: $315,950
  • Features a rich cultural scene and emerging industries.

Top Big Cities for Gen Z Homeownership

For those drawn to larger metropolitan areas, Phoenix, AZ, topped the list of major cities for Gen Z. With a median home price of $475,000 and a booming tech-driven job market, it offers an attractive mix of opportunity and affordability.

Other top big cities include:

• Austin, TX – Median Home Price: $599,000
• Dallas, TX – Median Home Price: $425,000
• San Antonio, TX – Median Home Price: $285,994
• Houston, TX – Median Home Price: $325,990

Migration Patterns: Heading South and West

The South and West regions of the U.S. have seen significant growth in their young adult populations, with increases of 3.4% and 4.4%, respectively, over the last decade. Conversely, the Northeast has experienced a 9.6% decline, driven by the region’s high cost of living.

• Booming Cities:
  Round Rock, TX, and Alexandria, VA, saw their young adult populations more than double in 10 years.
• Struggling Markets:
  Cities like New York and Philadelphia are losing young residents due to unaffordable housing. Creative solutions, such as co-buying multifamily units, are emerging among Gen Z buyers in these areas.