Much has been written about how millennial homebuyers have struggled with an affordability challenge when they try to buy a home.
But, according to Realtor.com, three Midwestern markets are the antithesis of that trend.
Realtor.com reported that nearly 80% of millennials own homes in Dubuque, Iowa (78%), Monroe, Michigan (76%), and Wausau, Wisconsin (76%), where lower home prices and more attainable entry-level options have made it easier for younger buyers to buy homes.
The median listing price ranges from $299,900 in Monroe to $359,950 in Wausau. Dubuque falls in between at $354,750.
“Affordability is the biggest factor, but not the only one. Many Midwest markets also have more entry-level homes available for sale, which makes it easier for younger households to transition from renting to owning,” Nadia Evangelou, Principal Economist and Director of Real Estate Research for the National Association of Realtors, told Realtor.com.
According to a new data analysis from NAR, in 2024, the median age of homeowners rose to 57.5 years up from 54 years recorded in 2010, even as the share of households owning homes remained just slightly above 65%.
Across the country, just 51.6% of millennials—ages 25 to 44—owned a home in 2024.
Above the National Average
“As a millennial myself, I can attest that we arguably have it worse,” Florida Real Estate Agent Nick Janovsky of Premier Sotheby’s International Realty told Realtor.com. “We entered the market during a post-recession recovery, confronting rising prices and stagnant wages. Balancing debt with the costs of homeownership makes it increasingly difficult to acquire our ideal homes.
“Persistent increases in insurance costs and artificially inflated mortgage rates leave millennials feeling cautious about purchasing their first home, leaving us far behind property ownership compared to boomers when they were our age.”
NAR said its research shows that in some parts of the country, millennials are finding it easier to buy homes than in others.
In several regions, millennial homeownership rates are well above the national average, according to NAR.
“I have a lot of millennial clients. We have five colleges in the area, so a lot of times they stay after graduation and settle down,” said Dubuque Real Estate Agent Dianne Granger of KW Elite Team tells Realtor.com.
“It’s affordable, so you get more house for your money here. More businesses and restaurants are moving into the area, and downtown Dubuque is being revitalized. It’s a great place to live and raise a family. It’s like an updated Mayberry.”
Evangelou noted that in high-cost markets such as Los Angeles, many millennials remain renters longer because both home prices and rents are high.
In LA, Many Renters are Cost-Burdened
“In fact, more than 60% of the renters in Los Angeles are cost-burdened, meaning they spend over 30% of their income on rent, which makes saving for a down payment much harder,” she said.
As a result, Realtor.com said, only about 30% of millennials own a home in Los Angeles—where the median listing price is $1,025,000.
“Los Angeles is just too expensive across the board for most homebuyers,” Jameson Tyler Drew, President of Anubis Properties in the Los Angeles area, said. “To even start to consider a home in Los Angeles, you have to have an income of over $250,000 per year. And that’s just to get yourself in the front door, so to speak.”
Expensive metros such as San Jose, San Francisco, New York, and San Diego are other examples where homeownership among younger households is also well below the national average, NAR said.
Not all big cities are unattainable for millennials.
“Some large Midwest markets, like Minneapolis and Indianapolis, still offer more attainable options for middle-income buyers,” Evangelou said. “What really matters is how home prices compare to incomes.”
In Minneapolis, for example, the median listing price stands at $404,950, while in Indianapolis it comes in at $305,000.
“Minneapolis is still affordable for millennial homebuyers relative to other cities, and I have many millennial clients we are currently working with,” Jeffrey Dewing of Coldwell Banker Realty in Minneapolis told Realtor.com. “We have a very strong and stable market because of the diverse economy. Millennials are drawn to all the amenities of Minneapolis: the city lakes, restaurants, and walkability.”
Jonathan Kile, Real Estate Agent at Loyal Home Buyers in Indianapolis, told Realtor.com: “Many millennials are entering as first-time buyers, and Indianapolis remains one of the more accessible markets for younger buyers who want to own rather than rent. We’re seeing interest from younger buyers relocating from higher-priced markets like Chicago and the coasts.”
