These 20 Cities — Including 9 with Median Home Prices Under $275,000 — Offer Young Homebuyers the Best Chance of Landing a Property, According to Point2 Housing affordability is near its lowest levels in four decades.

By William Edwards

Key Takeaways

  • With housing affordability at four-decade lows, it's a tough market for younger homebuyers.
  • But according to Point2, there are cities where young buyers are finding deals.
  • Some of them include Fort Wayne, Corpus Christi, and Detroit.
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Sean Pavone/Shutterstock via Business Insider

This article originally appeared on Business Insider.

It's a rough market out there for younger homebuyers.

Housing affordability is near its lowest levels in four decades as mortgage rates and home prices have skyrocketed relative to incomes.

But according to Point2, an online real-estate marketplace, there are still areas where young buyers are finding deals.

In a recent report, the firm looked at the 100 largest metropolitan areas in the US and ranked them based on how friendly they are to buyers under 25. In building their ranking model, they considered factors like home price-to-income ratios, the local Gen Z unemployment rates, Gen Z homeownership rates, inventory, days on the market, and more.

"Student loans and the rising cost of living means that Gen Z inherited the affordability concern from millennials," the report said. "So, when we factor in multiple metrics that might influence the attainability of homeownership for young people — such as household income among adults younger than 25 years old, Gen Z homeownership rate, and unemployment rate among this cohort — some cities emerge as homebuying pockets for America's youngest."

Below, we've listed the top 20 cities on Point2's index, along with their composite scores, local home price-to-income ratios, and Gen Z unemployment rates. We've also added median home-price data from Redfin.

1. Fort Wayne, Indiana

The city of Fort Wayne, Indiana

Fort Wayne, Indiana Posnov/Getty Images via BI

Point2's score for young home ownership chances (out of 100): 84.2

Median home price: $201,5000

Home price-to-income ratio: 4.8

Gen Z unemployment rate: 4.1%

Sources: Point2 and Redfin

2. Corpus Christi, Texas

Corpus Christi Texas

Sean Pavone/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 80.55

Median home price: $270,000

Home price-to-income ratio: 4.5

Gen Z unemployment rate: 7.8%

Sources: Point2 and Redfin

3. Detroit, Michigan

Detroit, Michigan downtown skyline

Detroit, Michigan skyline. Sean Pavone/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 80.53

Median home price: $85,000

Home price-to-income ratio: 3.1

Gen Z unemployment rate: 11%

Sources: Point2 and Redfin

4. Laredo, Texas

Cathedral of San Agustin on the Plaza in Laredo, Texas.

Cathedral of San Agustin on the Plaza in Laredo, Texas. Danita Delimont/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 78.7

Median home price: $235,000

Home price-to-income ratio: 6.1

Gen Z unemployment rate: 7.9%

Sources: Point2 and Redfin

5. Memphis, Tennessee

Downtown Memphis Tennessee Skyline at Sunset

Memphis, Tennessee. Connor D. Ryan/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 77

Median home price: $173,750

Home price-to-income ratio: 5.3

Gen Z unemployment rate: 8.1%

Sources: Point2 and Redfin

6. Lincoln, Nebraska

Aerial View of Lincoln, Nebraska, in Autumn.

Lincoln, Nebraska. Jacob Boomsma/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 75.18

Median home price: $265,000

Home price-to-income ratio: 6.9

Gen Z unemployment rate: 4%

Sources: Point2 and Redfin

7. Durham, North Carolina

durham nc

Sean Pavone/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 73.48

Median home price: $410,000

Home price-to-income ratio: 6.4

Gen Z unemployment rate: 1.5%

Sources: Point2 and Redfin

8. Fort Worth, Texas

Fort Worth

Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 73.13

Median home price: $330,000

Home price-to-income ratio: 7.9

Gen Z unemployment rate: 6.1%

Sources: Point2 and Redfin

9. Aurora, Colorado

aurora colorado

A woman kayaking on the Cherry Creek Reservoir in Aurora, Colorado. David C Stephens/Getty Images via BI

Point2's score for young home ownership chances (out of 100): 72.78

Median home price: $460,000

Home price-to-income ratio: 8.3

Gen Z unemployment rate: 6%

Sources: Point2 and Redfin

10. Scottsdale, Arizona

scottsdale arizona

Scottsdale, Arizona. Tim Roberts Photography/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 72.53

Median home price: $802,500

Home price-to-income ratio: 13.4

Gen Z unemployment rate: 3.5%

Sources: Point2 and Redfin Advertisement

11. Indianapolis, Indiana

Indianapolis

Getty Images vi BI

Point2's score for young home ownership chances (out of 100): 72.28

Median home price: $230,500

Home price-to-income ratio: 5.9

Gen Z unemployment rate: 7.2%

Sources: Point2 and Redfin

12. Orlando, Florida

Orlando

Sean Pavone/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 72.23

Median home price: $395,000

Home price-to-income ratio: 8.5

Gen Z unemployment rate: 3.6%

Sources: Point2 and Redfin

13. Mesa, Arizona

mesa arizona homes

Tim Roberts Photography/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 71.98

Median home price: $452,500

Home price-to-income ratio: 9

Gen Z unemployment rate: 5%

Sources: Point2 and Redfin

14. Oklahoma City, Oklahoma

Oklahoma City, Oklahoma

Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 71.45

Median home price: $256,990

Home price-to-income ratio: 7.5

Gen Z unemployment rate: 5.1%

Sources: Point2 and Redfin

15. Jacksonville, Florida

Jacksonville, Florida

joe daniel price/Getty Images via BI

Point2's score for young home ownership chances (out of 100): 71.35

Median home price: $310,000

Home price-to-income ratio: 6.8

Gen Z unemployment rate: 7.9%

Sources: Point2 and Redfin

16. San Antonio, Texas

San Antonio

Sean Pavone/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 70.75

Median home price: $269,000

Home price-to-income ratio: 7.1

Gen Z unemployment rate: 8.9%

Sources: Point2 and Redfin

17. Garland, Texas

Garland Texas

City of Garland, Texas Government / Facebook via BI

Point2's score for young home ownership chances (out of 100): 69.88

Median home price: $327,000

Home price-to-income ratio: 5.1

Gen Z unemployment rate: 9.5%

Sources: Point2 and Redfin

18. Gilbert

An aerial view of Gilbert, Arizona.

Gilbert, Arizona. halbergman/Getty Images via BI

Point2's score for young home ownership chances (out of 100): 69.63

Median home price: $550,000

Home price-to-income ratio: 7.7

Gen Z unemployment rate: 1.6%

Sources: Point2 and Redfin

19. Denver, Colorado

Denver, Colorado.

Denver, Colorado. f11photo/Shutterstock via BI

Point2's score for young home ownership chances (out of 100): 68.73

Median home price: $530,000

Home price-to-income ratio: 10.2

Gen Z unemployment rate: 1.5%

Sources: Point2 and Redfin

20. Colorado Springs, CO

Colorado, Springs

Jacob Boomsma/Getty Images via BI

Point2's score for young home ownership chances (out of 100): 67.73

Median home price: $435,000

Home price-to-income ratio: 10.1

Gen Z unemployment rate: 3.5%

Sources: Point2 and Redfin

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