The dream of owning a home feels increasingly out of reach for younger buyers, especially in major cities. Skyrocketing home prices and elevated mortgage rates have pushed many urban markets far beyond what most first-time buyers can afford.
But venture just a few hours outside of these major metros or even a flight away in smaller Midwestern or Southern towns, and the math changes fast. In many cases, you can still find move-in-ready homes for less than the price of a luxury car.
According to Ben Mizes, a licensed real estate agent in Missouri and co-founder of Clever Offers, going rural can offer a realistic entry point into homeownership.
“If Gen Z and millennials don’t want to rent forever or are hoping to generate equity, purchasing in rural markets provides the most attainable path for owning a home right now.”
Below are four examples of rural and small-city markets where affordability still exists and why they’re starting to draw interest from younger buyers.
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Marshalltown, Iowa
In Marshalltown, buyers can find a refurbished three-bedroom, two-bath home on a quarter-acre for around $119,000. That is roughly the same price as a studio apartment in many large U.S. cities.
“With a relatively low cost of living and increasing remote work flexibility, places like this are drawing the interest of first-time buyers,” said Mizes.
Lower housing costs also mean more financial breathing room. In markets like Marshalltown, more of your money can go toward savings, investing or paying down debt — all important for building long-term financial stability.
Beckley, West Virginia
If you’re looking for a home under $100,000 with a large backyard, consider shopping around Beckley.
“There are still move-in-ready homes for under $100K that come with big yards and recent updates,” Mizes said. “For Gen Z and millennials, that’s less than what many pay in rent each year.”
To put that in perspective, annual rent for a one-bedroom apartment in cities like Brooklyn, New York can easily exceed six figures over just a few years. Meanwhile, urban starter homes often remain unattainable.
“[You might see] a two-bedroom walk-up in Williamsburg listed at $1.1 million, which also comes with HOA fees over $900/month,” Mizes said. “That prices out anyone who doesn’t have generational wealth or tech IPO money.”
Decatur, Illinois
Decatur offers more than just affordable home prices. The city also offers steady employment across multiple industries, including manufacturing and health care.
“Three-bedroom houses in good shape can be found for about $85,000,” Mizes said. “With a lower cost of living and access to steady jobs in manufacturing and health care, the city is providing young buyers with an inexpensive way into homeownership, along with long-term equity growth.”
Lower monthly housing costs can be valuable while you’re climbing the career ladder, giving you breathing room to save and invest beyond just keeping a roof over your head.
Pittsburg, Kansas
Pittsburg is another option for Gen Zs and millennials looking to break into the housing market. You can find a place to call home without the urban price tag.
“Median home prices are about $120,000, featuring a good proportion of renovated older homes and new construction,” Mizes said. “The town’s sense of community and its university presence make it a lively but still affordable choice for first-time buyers looking for value and a good quality of life.”
Compare this to a coastal market like San Francisco, where a one-bedroom, one-bathroom condo was recently listed for $699,000 and is still considered a “starter home.” Even with a 20% down payment, monthly costs often exceed what a typical millennial income can comfortably support.
For Gen Z and millennials determined to stop renting and start building equity, rural and small-city markets offer something increasingly rare: opportunity. While these locations may require lifestyle trade-offs, they also provide a realistic path to homeownership, aligning better with today’s incomes, debt loads and financial priorities.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: These 4 Rural Markets Prove Homeownership Is Possible for Gen Z and Millennials
