It might be more difficult than ever for young people to keep their American dream alive by buying a home, but that isn’t stopping the under-35 set from snapping up houses in Minnesota.
The Land of 10,000 Lakes is the only state in the union where the homeownership rate for Gen Z and younger millennials is more than 50%, says a new study by property management company Evernest, which manages 22,000 properties for over 9,000 owners.
“The emergence of noncoastal states like Minnesota as homeownership hubs for millennials and Gen Z signals a significant demographic shift,” says Spencer Sutton, vice president of marketing. “With over half of Minnesotans under 35 achieving homeownership—nearly double the rate in high-cost coastal markets—we’re witnessing young Americans prioritize financial stability and space over traditional urban amenities.”
The report says Minnesota, with 50.8% homeownership in the under-35 age category, beats every other state in the union. It is followed by Michigan, Alabama, Indiana, and Utah.
The study analyzed homeownership rates for those under age 35 based on census data, the average young adult (25-44) income in the state, and other factors to achieve a final weighted index score for the best states where young adults prefer to buy property.
Minnesota came out on top with a final score of 92.7.
(Realtor.com)
Why Minnesota?
So what’s drawing young adult homebuyers to this Northern area, known for its chilly winters and many lakes? In a word, affordability.
“Minnesota homes tend to be priced lower than the national norm, making the market more approachable for young homebuyers,” says Hannah Jones, senior economic research analyst at Realtor.com®. “The Twin Cities area attracts young homebuyers who are looking for relative affordability without sacrificing job opportunities.”
It’s no surprise that none of the states on the list is in the Northeast or West Coast, where prices tend to be much higher than the national.
“Affordable, abundant housing options are important to attract and retain young homebuyers,” explains Jones. “As the housing market has gotten vastly less affordable over the last five-plus years, locales that offer an affordable cost of living relative to local incomes, as well as ample housing inventory, are able to attract and retain investment from young homebuyers.”
It helps that the state also offers young adults a more robust salary than average: $94,800 annually.
That doesn’t mean Minnesota is a steal. The median home price rose 33.3% over the past six years, to $399,900 in April 2025. Nor is the state a secret. Buyers have been flocking to the area since at least 2020.
There were 10,548 homes for sale in Minnesota in April, up 12.2% year over year, but still well below pre-pandemic levels. In April 2019, there were 16,540 homes for sale in Minnesota, according to Realtor.com data.
And homes are getting snapped up faster than ever. The typical house spent 36 days on the market in April, 5.3% lower than a year prior and two weeks less than the typical U.S. home.
Author Larry Samuel, who writes about homeownership, who lived in Minneapolis for 18 years, says that the strong community in the area—as well as the extreme cold—fosters a desire for homeownership.
“We called the cold the ‘blessed curse’ as it kept the riffraff out,” he says.
If you were intrepid enough to stand the teeth-chattering winters of Minnesota, then you were there for the long haul.
“Young adults thus are eager to invest in a property as soon as possible, earlier, I believe, than in more transient parts of the country,” he says.
Greta Diers, who bought a home in Minneapolis in 2024, agrees that homeownership is part of the fabric of the state.
“From what I’ve seen, it’s somewhat cultural here. Many people don’t grow up living in apartments, and it’s common to settle down at a younger age, so there’s more motivation to buy a home,” she tells Realtor.com.
Minnesota
Homeownership rate: 50.8%
Final score: 92.7
Minnesota is famous not only for its many lakes and freezing winters, but also for its bustling, diverse metros of Minneapolis and St. Paul (the Twin Cities). It’s an area that music icons Prince and Bob Dylan have called home.
(Realtor.com)
Michigan
Homeownership rate: 49.3%
Final score: 83.6
With nearly double the population of Minnesota, and an average annual young adult income of $75,900, Michigan is the second most desirable place for the under-35 set to call home. And with the very reasonable median home list price of $284,762, the state is more affordable than most.
(Realtor.com)
Alabama
Homeownership rate: 49.1%
Final score: 79.8
The percentage of owner-occupied homes with a mortgage is 65.5%, the third highest on the list, behind Utah and Minnesota. The average young adult income is fairly high, at $76,730. Combine that with a lower-than-average median home price point of $336,000, and this Southern state is friendly to young homebuyers.
(Realtor.com)
Indiana
Home ownership rate: 47%
Final score: 78.7
The Hoosier State is just a smidge less friendly to the young adult homebuyer than Alabama. With a higher average salary ($76,700), this Midwest area has slightly lower ownership rates. A median home list price of $299,900 keeps the home state of Notre Dame and James Dean affordable.
(Realtor.com)
Utah
Home ownership rate: 46.1%
Final score: 78.9
With a high median home price tag of $595,000, Utah might seem like an odd choice for young adults starting their homeownership journey. But the higher-than-average salary of $95,210 explains why the state, known for its “Mighty 5” national parks and world-class skiing, is a good choice for young adults.
(Realtor.com)
