Key insights
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1
Affordability as a Key Driver: The Midwest offers significantly lower home prices compared to coastal cities, which is a major factor attracting Gen Z buyers. Cities like Indianapolis and St. Louis provide more bang for the buck, allowing young buyers to enter the housing market despite financial challenges.
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2
Impact of High Mortgage Rates: Despite the high mortgage rates, which have been a deterrent for many prospective buyers, Gen Z is finding ways to navigate these financial hurdles. The lower cost of living and housing in the Midwest helps offset the impact of higher borrowing costs.
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3
Shift in Housing Preferences: There is a noticeable shift in housing preferences among Gen Z, who are prioritizing affordability and quality of life over the prestige of living in coastal cities. This trend could reshape regional housing markets and potentially drive economic growth in the Midwest.
Takeaways
Gen Z's move towards homeownership in the Midwest highlights a significant trend driven by affordability and practicality. Despite high mortgage rates, the lower cost of living and housing in cities like Indianapolis and St. Louis make them attractive options for young buyers. This shift may have long-term implications for regional housing markets and economic landscapes.