Cleveland, Ohio, gives Gen Z the most realistic chance of buying their first home, a July 2026 report finds. With the average American home now costing over $400K and mortgage rates above 6%, a new study by the cabinet manufacturing company Highland Cabinetry reveals the top 10 cities where young people can still afford to buy a house.
- Gen Z homebuyers in Cleveland can cover the cost of a typical home with just 4 years of their salary.
- Dallas is among the most affordable housing markets, with 80% of 20-somethings employed and making $70K+.
- Los Angeles is the hardest city for young adults to buy a home, where the average property costs over 15 times the annual income.
The research examined large US cities to find where Gen Z has the strongest chance of buying a first home. It measured each city’s median home value against what young adults aged 20-29 actually earn, using Zillow price data and Census Bureau income figures. The study also tracked how many people in their 20s are employed in each city, the average 30-year mortgage rates, and what first-time buyer assistance programs are available. Cities were then ranked by their price-to-income ratio, with the lower scores pointing to a more realistic path to homeownership for young buyers.
Here’s a look at the top 10 US cities where Gen Z has the best chance of buying a home:
| City | State | Median Home Value ($) | est. Median Income, 20 – 29($) | Count of Employed (20-29) | Employment Rate (20-29) | House Price-to-Income | Mortgage Rate (30-yr) |
| Cleveland, OH | OH | 120K | 32K | 39K | 74.9% | 3.75 | 6.87% |
| St. Louis, MO | MO | 188K | 50K | 33K | 76.7% | 3.75 | 6.87% |
| Oklahoma City, OK | OK | 209K | 54K | 81K | 75.5% | 3.85 | 6.84% |
| Indianapolis, IN | IN | 233K | 57K | 108K | 79.4% | 4.09 | 6.81% |
| Dallas, TX | TX | 312K | 74K | 184K | 78.9% | 4.17 | 6.64% |
| Tulsa, OK | OK | 221K | 46K | 46K | 74.6% | 4.75 | 6.84% |
| Philadelphia, PA | PA | 236K | 47K | 178K | 73.7% | 5.00 | 6.80% |
| Columbus, OH | OH | 251K | 50K | 130K | 78.9% | 5.02 | 6.87% |
| Buffalo, NY | NY | 246K | 47K | 35K | 72.2% | 5.23 | 6.79% |
| Houston, TX | TX | 264K | 48K | 272K | 71.4% | 5.47 | 6.64% |
1. Cleveland, Ohio
- Median home value: $120,549
- Median income, ages 20-29: $32,112
- Employment rate, ages 20-29: 74.9%
- Price-to-income ratio: 3.75
- Mortgage rate: 6.87%
Cleveland is the most accessible housing market for young buyers in the country. A typical home here costs just under $121K, less than 4 times what the average Gen Z earns in a year. This means a young couple pooling their income could realistically save for a down payment without waiting a decade. About 3 in 4 residents in their 20s are also employed in Cleveland, so the local job market provides enough stability to support that kind of financial planning.
2. St. Louis, Missouri
St. Louis is another great pick for young homebuyers. Homes here cost around $188K on average, higher than in Cleveland but offset by stronger earnings. The median income for 20-somethings here reaches $50K, roughly $18K more than in Cleveland. This means Gen Z here can actually afford to enter the housing market with a 4-year salary. About 77% of young residents in St. Louis are also employed, making homeownership even more realistic.
3. Oklahoma City, Oklahoma
Oklahoma City comes next on the list. A typical home here costs around $209K, while young professionals earn an average of $54K a year, making homeownership equally realistic as in Cleveland and St. Louis. The state’s 6.84% mortgage rate is also among the lower ones in the country. Plus, more than 3 in 4 residents aged 20-29 have jobs, and Oklahoma’s first-time buyer programs provide an extra financial cushion, helping with down payments for those who qualify.
4. Indianapolis, Indiana
Indianapolis comes fourth among the best cities for Gen Z. It has the highest youth employment rate in the entire top five, with nearly 79% of residents in their 20s working. On top of that, the median young-adult income is $57K, and with a typical home costing $233K, Gen Z households here need just over 4 years of their salary to cover it. One extra advantage is that Indiana also has more favorable mortgage rates, at 6.81%
5. Dallas, Texas
Dallas rounds out the top five cities for young adults to buy their first home. At $312K, houses here cost more than twice what they do in Cleveland, but young adults in Dallas also earn considerably more: $74K+ a year at the median. That pay level allows them to save enough to cover the typical house price in over 4 years, similar to other high-ranked cities. Texas also carries the lowest mortgage rate of the top five at 6.64%, and nearly 80% of Gen Z here are employed.
A spokesperson from Highland Cabinetry commented on the study:
“The biggest mistake young buyers make is waiting until they have 20% saved for a down payment. Most state programs let you put down 3% to 5%, and some offer grants you never have to pay back. If you’re in a city like Cleveland or Indianapolis, you could be buying with $6K to $10K out of pocket. Start by calling your state’s housing finance agency; most people don’t even know these programs exist.”
