I’m in Real Estate: 7 Cities Where Millennials Should Invest in Property in 2026
Written by
Vance Cariaga
Edited by
Brendan McGinley
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The youngest millennials will turn 30 years old in 2026, which is usually about when people start thinking hard about buying a house. Times have changed, however.
The typical age of first-time home buyers climbed to an all-time high of 40 years as of June 2025, according to a new report from the National Association of Realtors. That kind of stat is “shocking,” said Lynette Arrasmith, Home Loan Specialist at Churchill Mortgage.
“It tells me that millennials don’t know what they don’t know, and they likely assume they can’t afford to buy — a misconception that isn’t true,” Arrasmith told GOBankingRates.
One way to make homeownership more affordable is to finance itself as a rental property. Millennials looking to invest in a home or other types of real estate have plenty of opportunities if they look in the right place. Below are seven cities where millennials should consider investing in property in 2026, according to real estate agents and other experts.
Birmingham, Alabama
- Cost-of-living score: 87
- Median age: 35.7
Birmingham offers excellent real estate investment opportunities for millennials — as long as they search the right areas.
Dani Beit-Or, founder and CEO of real estate investment platform Simply Do It, recommends the suburbs because that’s where you’ll find “stable jobs” and people who want to raise families.
“I’m looking at areas with good schools, new construction and tenants that want to stay put,” Beit-Or told GBR.
Cedar Rapids, Iowa
- Cost-of-living score: 81.8
- Median age: 36.5
For millennials interested in investing in rental properties, Cedar Rapids offers a “major under-the-radar opportunity with demand exceeding available listings,” according to Jeff Hurst, CEO of Furnished Finder, a leading platform for monthly and mid-term rentals.
He cited these advantages for millennials in Cedar Rapids:
- Lower entry prices make investing “more accessible.”
- “Consistent” mid-term rental demand driven by hospital systems and corporate relocations.
- Less competition from institutional investors, giving millennials “room to scale.”
Nashville, Tennessee
- Cost-of-living score: 104.7
- Median age: 37
Nashville is a hot housing market with a slightly above average cost of living, mainly because of Music Row and downtown. But that’s not necessarily where millennials should invest in property.
“The suburban markets around the Nashville metro give my clients the most bang for their buck, and they get to enjoy the benefit of a strong economy and growth without the inflated prices,” Beit-Or said.
New York, New York
- Cost-of-living score: 172.5
- Median age: 38.8
The Big Apple will never qualify as “affordable.” But for millennials interested in investing in rental properties, it offers plenty of potentially lucrative opportunities, Hurst said.
Here are reasons he believes New York City is “ideal” for millennial investors:
- High search volume means “quicker match times.”
- Three out of four landlords on Furnished Finder get tenant interest within 30 days
- Flexible, furnished listings “appeal to the city’s large academic, business and relocation tenant base.”
Omaha, Nebraska
- Cost-of-living score: 90.8
- Median age: 35.9
Arrasmith points to Omaha’s affordability as one of its main attractions for millennial property investors.
“Our average closed price for new construction is under $500,000, and for an existing home under $370,000, she said. “Owning real estate is a fantastic way to build wealth, and in Omaha, we’ve consistently seen 4%-5% appreciation in our market year-over-year.”
Raleigh, North Carolina
- Cost-of-living score: 105.8
- Median age: 34.9
Ralph DiBugnara, founder and president of real estate investment platform Home Qualified, gives Raleigh high marks for its robust tech industry and potential to benefit from employer-mandated return-to-office initiatives.
“A great strategy for 2026 would be to look into any cities that are growing population because of workforce,” he told GBR. “This can be a major needle mover in higher prices for real estate.”
St. Louis, Missouri
- Cost-of-living score: 84.1
- Median age: 37.2
The St. Louis metro area “checks a lot of boxes” for millennials interested in home investments, Beit-Or said. He pointed to “stable jobs” from major healthcare systems and Fortune 500 employees, as well as “landlord-friendly” state laws that protect investments.
The cost-of-living scores come from an analysis by BestPlaces and are based on an average of 100. Cities with a score below 100 are less expensive than the national average, while those above 100 are more expensive. Median ages are from the U.S. Census Bureau and are intended to provide an idea of why these cities might appeal to millennials.
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