They Didn’t Disappear—Nearly 80% of Millennials in These 3 Cities Are Homemakers
Millennial home buyers have an affordability challenge when it comes to breaking into the housing market, but not in three Midwestern markets.
Nearly 80% of millennials own homes in Dubuque, IA (78%), Monroe, MI (76%), and Wausau, WI (76%), where lower home prices and more accessible entry options make it easier for younger buyers to purchase a property.
The median listing price ranges from $299,900 in Monroe to $359,950 in Wausau, with Dubuque falling in between at $354,750.
“Affordability is a big factor, but it’s not the only one. Many Midwest markets also have many entry-level homes available for sale, making it easier for young families to transition from renting to owning,” Nadia Evangelou, chief economist and director of real estate research for the National Association of Realtors®, tells Realtor.com®.
By 2024, the median age of homeowners increased to 57.5 years, up from 54 years recorded in 2010, even as the share of homeowners remained just over 65%, according to a new data analysis from NAR.
Nationwide, only 51.6 percent of millennials — ages 25 to 44 — owned a home in 2024.
“As a millennial myself, I can attest to the fact that it’s pretty bad,” said a Florida real estate agent. Nick Janovsky of Premier Sotheby’s International Realty tells Realtor.com. “We entered the market during a post-recession recovery, faced with rising prices and stagnant wages. Balancing debt and the cost of home ownership made it very difficult to find our ideal homes.
“Continuously rising insurance costs and unreasonably high mortgage rates are leaving millennials feeling wary about buying their first home, leaving us far behind in homeownership compared to boomers when they were around.”
NAR research shows where you live can make a big difference. In some parts of the country, millennials are finding it easier to buy homes than others.
Small markets are popular with millennials
In several states, millennial homeownership rates are significantly higher than the national average, according to the NAR.
“I have a lot of millennial clients. We have five colleges in the area, so a lot of times they stay after they graduate and they’re settled,” the Dubuque real estate agent said. Dianne Granger of the KW Elite Group tells Realtor.com.
“It’s affordable, so you get more housing for your money here. A lot of 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 Mayberry updated.”
Big cities are hard to get into
Evangelou says that in high-cost markets like Los Angeles, millennials remain long-term renters because both housing prices and rents are high.
“In fact, more than 60% of Los Angeles renters are struggling, meaning they are spending more than 30% of their rent, making saving a little more difficult,” he said.
As a result, only about 30 percent of millennials own a home in Los Angeles—where the median listing price is $1,025,000.
“Los Angeles is too expensive for most homebuyers,” Jameson Tyler Drewpresident of Anubis Properties in the Los Angeles area, tells Realtor.com. “To even consider a home in Los Angeles, you have to have an income of more than $250,000 a year. And that’s putting yourself in the front door, on average.”
Pricey metros like San Jose, San Francisco, New York, and San Diego are some examples where homeownership among young families is also below the national average, according to the NAR.
But not all big cities are inaccessible to millennials.
Evangelou says, “Some of the larger Midwest markets, like Minneapolis and Indianapolis, still offer more affordable options for middle-income buyers,” he said. “What really matters is how house prices compare to incomes.”
In Minneapolis, the median listing price comes in at $404,950, while in Indianapolis it comes in at $305,000.
“Minneapolis is still affordable for millennial home buyers compared to other cities, and I have a lot of millennial clients that we’re working with right now,” Jeffrey Dewing of Coldwell Banker Realty in Minneapolis tells Realtor.com. “We have a strong and stable market because of a diverse economy. Millennials are drawn to all of Minneapolis’ amenities: city pools, restaurants, and good walking.”
Jonathan Kilereal estate agent at Loyal Home Buyers in Indianapolis, tells Realtor.com, “Many millennials are moving in as first-time buyers, and Indianapolis is still one of the most accessible markets for younger buyers who want to own rather than rent. We’re seeing interest from younger buyers from higher-priced markets like Chicago and the coasts.”
