Why the Midwest Has the Best Housing Markets in America This Fall

Decreases in interest rates are signaling positive changes for the housing market this fall, giving potential homebuyers hope as inventory starts to free up around the country.

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People looking for homes in a part of the country with affordable costs of living and a slower pace of life, may find that the Midwest is the perfect place.

Real estate experts explained why homebuyers will find some of the best housing markets in the Midwest this fall.

More House for Your Money

Homes in the Midwest have a strong balance of cost and value, according to Dan Reedy, a real estate expert and long-time investor based in Kansas City, Missouri.

“You get a lot of house for your money compared to coastal markets, and buyers aren’t maxing out their budgets just to own. This stability keeps our markets resilient even when national trends fluctuate,” he said.

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Steady Job Growth

Another factor Reedy noted is the region’s steady job growth across industries.

“We’re seeing strong demand from people moving here for work and quality of life,” he said. “It’s not just a good place to invest — it’s a place where people are building careers and staying for the long term.”

People Stay Longer

These factors may explain why people tend to stay longer, according to David Milo, a real estate expert and the owner of Independent Lending.

“I’ve noticed that Midwest cities like Milwaukee, Wisconsin; Grand Rapids, Michigan, and Omaha, Nebraska, benefit from a high rate of long-term homeowners, unlike the transient rental-heavy scenes on the coasts,” he explained. 

This stability brings a steadying force to prices, creating an appealingly resilient environment for buyers and investors alike, he explained, saying that this is especially good for families and those seeking a rooted community.

Down Payment Assistance 

A lesser-discussed factor is how local policies in places like Indianapolis and Columbus, Ohio, support first-time buyers with down payment assistance and tax incentives for eco-friendly home improvements, Milo said. 

“These programs encourage residents to invest in their properties, creating neighborhoods that retain value without the roller coaster highs and lows seen elsewhere.”

Better Quality of Life

Probably one of the biggest “sells” for the Midwest, Milo said, and why the housing market is thriving, has to do with lower commute times, reliable infrastructure and the welcoming setup for remote work.

“It’s easy to see why this region isn’t just affordable but also a wise, balanced choice for those wanting value and quality of life,” Milo said.

Reedy agreed, adding, “Cities here offer a lifestyle people want: great food, arts and a community feel without the sky-high costs and congestion.” 

Solid Returns for Investors

Reedy said the Midwest is also shaping up to deliver high returns for real estate investors, especially as rental demand increases across the region.

“In areas like Indianapolis, Cincinnati, and Kansas City, we’re looking at cap rates that are simply higher than what you’ll get on the coasts. Rental demand is outpacing supply, which means steady income for investors and better ROI. The Midwest’s stability paired with these returns is a combination that’s hard to beat,” he said.

Reedy feels that the market has even more room to grow, which bodes well for investors.

Flourishing Economy, Lower Cost of Living

The Midwest’s housing market is also flourishing due to a combination of affordability, economic growth and lifestyle shifts, according to Tim Choate, founder and CEO of RedAwning.com, Inc.

“Unlike the coastal markets where property prices have skyrocketed, Midwestern cities offer affordable options without compromising on amenities or quality of life.”

He gives the example of Columbus, Ohio, which has become a tech hub, attracting startups and established companies alike. “This influx of businesses has spurred job growth, drawing in a younger workforce seeking housing. I remember visiting Columbus recently and noticing how neighborhoods once considered quiet are now buzzing with new restaurants, parks and community events,” Choate said. 

Rise of Remote Work

Another factor in favor of Midwest housing markets is the rise of remote work, which has allowed people to relocate away from traditionally expensive areas, Choate pointed out.

“An old colleague of mine moved from San Francisco to Kansas City and was amazed at how much further his money went — he purchased a spacious home for a fraction of what it would have cost on the West Coast.”

For buyers who are open to relocating, the Midwest may be the best place to call home.

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This article originally appeared on GOBankingRates.com: Why the Midwest Has the Best Housing Markets in America This Fall

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