6 US Cities Most Favorable to Millennial Homeownership

For the first time since the housing affordability crisis intensified in 2022, there’s a sign of stabilization for millennial renters hoping to buy homes.

Yes, really. New data from Zillow shows that the share of renter households led by adults ages 29 to 43 who can afford the monthly cost of homeownership has stopped declining — a shift that could signal renewed opportunity in certain markets.

In 2024, about 20.4% of millennial renter households could afford to buy a typical home in their metro area with a 5% down payment, up slightly from 20.2% in 2023. While the increase is modest, it marks the first signs of stabilization after a steep drop from 34% in 2021, when mortgage rates were far lower and affordability was less strained.

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However, that stabilization isn’t showing up everywhere. Among the nation’s 50 largest metro areas, the highest shares of ownership‑ready millennial renters are concentrated in parts of the Midwest and South, where home prices and monthly payments remain more attainable than in many coastal markets.

The 6 US Metros Where Millennial Renters Are Most Likely To Afford Buying a Home

Assuming a 5% down payment, these cities have the highest percentages of homebuying-age renter households that are ownership-ready. While there are suburban areas even friendlier to the transition, these are the ones in large metro areas.

1. Pittsburgh: 33.8%

2. Cleveland: 27.1%

3. Buffalo, New York: 26.3%

4. Birmingham, Alabama: 25.9%

5. Detroit: 24.9%

6. Chicago: 24.1%

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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