Millennials' Secret to Homeownership: 25 Bargain Cities Where You Could Live the Good Life

It’s no secret that buying a home is still out of reach for many millennials. According to Realtor.com, the median home price across the U.S. is $438k, but it’s much higher in popular areas like California, Seattle, or New York: $787,000, $800,000, and $825,000, respectively. 

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For a 10% down payment, the average first-time homebuyer could take more than 10 years to save the needed funds. And by that time, prices will be even higher. 

What if we told you there are cities with beautiful parks, interesting museums, great restaurants, and other amenities where the average home price hovers around $200k? It seems too good to be true, but they do exist.

According to a report by the Dayton Convention & Visitors Bureau, the top 25 cities for homeownership aren’t on the coasts. Most are clustered in the Midwestern states, from north to south. But before you close the page, check out the tremendous value they have to offer. 

Number 25 on the list is Dayton, Ohio, known for its leadership in industries from water management to health care to IT. It’s also the birthplace of aviation. The city is known for its rivers, parks, recreational activities, restaurants, and concert venues. 

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It has excellent schools, less traffic than larger cities, and a low cost of living compared to the national average. Not convinced? According to Zillow, the average home price is just $151,092, nearly one-third of the national average. Dayton residents spend an average of 24% of their income on living expenses, giving them more savings and vacations. 

Two Ohio cities make the list, with Toledo ranked #19. Oklahoma, Missouri, Texas, Illinois, Kentucky, Nebraska, and Alabama all have two cities on the list. Indiana wins with three cities: Fort Wayne takes the #1 spot, with South Bend at #18 and Indianapolis at #21. 

The other states with a single city on the list are Iowa, Louisiana, Arkansas, Wisconsin, North Carolina, and Kansas. 

Hickory, North Carolina, lands at #6. Before you think of hillbillies and run for the hills, take a minute to consider what Hickory offers. It’s just 60 miles from Charlotte and is known as the furniture manufacturing capital of the US. You can find gorgeous furniture at outlet prices, so your new home will be beautifully furnished. 

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Hickory is in the Blue Ridge Mountains and boasts outdoor adventures, from the mountains to lakes, delicious restaurants, interesting concerts, and more. Plus, Charlotte is just a short drive away. The median household income is $63,531, higher than the national average. Better yet, the average Hickory resident spends 22.5% of their income on living expenses. As per Zillow, average home prices in Hickory are $288k, about 35% less than the national average. 

And if you’re looking for the best city to buy a home, Indianapolis takes the number one spot. It’s known for the Indiana Speedway, children’s museum, zoo, central canal, river park, cultural trails, and other outdoor adventures. Zillow reports that the median household income is $71,507, but residents spend less than 20% on living expenses. The average home price is $233k, almost half the national average.

Not convinced you could withstand Midwest winters? Consider cities in Texas, Alabama, or even (milder) North Carolina. If you crave a bigger city, Lexington, Omaha, Tulsa, and Kansas City all made the list. 

Here’s the full list:

  1. Fort Wayne, Indiana
  2. Huntsville, Alabama
  3. Wichita, Kansas
  4. Springfield, Missouri
  5. Davenport, Iowa
  6. Hickory, North Carolina
  7. Montgomery, Alabama
  8. Green Bay, Wisconsin
  9. Little Rock, Arkansas
  10. Oklahoma City, Oklahoma
  11. Lexington, Kentucky
  12. Lafayette, Louisiana
  13. Omaha, Nebraska
  14. Brownsville, Texas
  15. Lincoln, Nebraska
  16. Peoria, Illinois
  17. Louisville, Kentucky
  18. South Bend, Indiana
  19. Toledo, Ohio
  20. Rockford, Illinois
  21. Indianapolis, Indiana
  22. McAllen, Texas
  23. Kansas City, Missouri
  24. Tulsa, Oklahoma
  25. Dayton, Ohio

While the middle states were once called the "flyover states," they’ve grown over the last 30 years. You can get anything except an ocean in the middle states, and with the Great Lakes, they’ve nearly got an ocean, too. These 25 cities offer all the coasts have, plus the ability to save for retirement, contribute to a 529 plan for your kids’ college education, and even afford a house. The American dream isn’t dead; it’s living in the Midwest. 

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