As homeownership trends shift across the United States, a new ranking highlights the best states where young Americans, particularly those under 35, are successfully buying homes. These rankings are based on affordability, mortgage prevalence, average income, and ownership rates among young adults.

1. Minnesota Leads the Pack

At the top of the list is Minnesota, where a remarkable 50.8% of people under 35 own homes. High salaries for young adults, averaging $94,800, play a pivotal role in enabling this demographic to manage mortgages and invest in long-term housing. While many young homeowners in Minnesota do carry mortgages, their income levels offer a strong buffer for monthly payments.

2. Michigan Offers Affordability

Michigan takes the second spot, with 49.3% of young people owning homes and an impressive overall score of 83.6. Unlike Minnesota, Michigan boasts more affordable housing, an average of $236,600, but with lower salaries. Despite this, its affordability makes it an appealing option for first-time buyers.

3. Alabama Stands Out in the South

Alabama secures third place, with 49.1% of young adults owning a home. With home prices averaging $222,500 and just 56.3% of homeowners holding mortgages, Alabama combines affordability with flexibility. This Southern state is fast becoming one of the best states for young homebuyers, especially those seeking financial stability in a lower-cost environment.

Rounding Out the Top Ten

• Indiana (4th): 47% ownership, $231.6K home price, mid-range salaries.
• Utah (5th): Highest mortgage rate (71.1%) but strong ownership at 46.1%.
• West Virginia (6th): Most affordable homes at $158.2K and 49.9% ownership.
• Delaware (7th): High salaries ($90.1K) and 46.5% ownership.
• South Carolina (8th): $292.5K average home price and 48% ownership.
• Mississippi (9th): Low income but high affordability; 49.2% ownership.
• Kentucky (10th): 46.9% ownership with fewer mortgages.

A Generational Shift in Housing Choices

Spencer Sutton, VP of Marketing at Evernest, noted:

“The emergence of non-coastal states like Minnesota as homeownership hubs for millennials and Gen Z signals a significant demographic shift… We’re witnessing young Americans prioritize financial stability and space over traditional urban amenities.”

This generational pivot underscores how states offering a balance of affordable housing, livable wages, and mortgage flexibility are fast becoming the best states for young homebuyers in today’s evolving real estate market.