4 Best States for Gen X To Buy a Home — and the 2 Worst States
If you’re Gen X (born between 1965 and 1980) and want to buy a home, there are a few things you should consider. Chief among them are location and cost of living.
Not only are property prices still high (the average home sale price was $492,700 in August 2024, according to the U.S. Census Bureau), but other factors — like utilities, food and healthcare — also play a role in your financial well-being. And if you’re at the older end of Gen X and nearing retirement age, you might want to factor in retirement as well.
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As you weigh your options, here are a few of the best and worst states to buy a home, according to real estate experts.
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Best: Florida
Average cost of homes: $394,728
It might sound cliché, but there’s a reason Florida remains high on many older individuals’ list of places to buy a home (and possibly retire).
“Florida’s lack of state income tax is a major draw for homebuyers who may be looking to maximize retirement savings or lower their overall tax burden,” said McKenzie Ryan, award-winning real estate agent and founder of the McKenzie Ryan team at Douglas Elliman.
And if Florida is too broad, consider heading south.
“South Florida’s year-round warm weather is appealing for those seeking to avoid colder climates, especially for Gen Xers looking to enjoy an active, outdoor lifestyle in their 40s and 50s,” Ryan said. “Florida also has a lot of housing optionality — everything from high-rises, ranch style homes, art-deco apartments and more.”
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Best: Tennessee
Average cost of homes: $321,435
Like Florida, Tennessee doesn’t have an individual state income tax. For the most part, homes are also still affordable there — especially compared with costs in other states. The state also has more opportunities in terms of lifestyle and work.
“For those in Gen X that are planning on working a while longer, [Tennessee has] major metros like Nashville that provide great employment options and expansion into various different industries,” said Blake Blahut, broker associate and Realtor at Realty One Group Inspiration.
Best: Texas
Average cost of homes: $301,627
Texas is another great option for Gen Xers looking to buy property.
“Like Florida, it has no state income tax, which gives a huge financial benefit to Gen X looking to purchase a home. The other reason why I absolutely love Texas for Gen X is it has many suburban cities/towns that offer outstanding home options that are more affordable compared to many other states,” Blahut said. “Texas also provides a much needed relief to those wanting to get away from the brutal winters that many Gen Xers try to escape from.”
Best: New York
Average cost of homes: $481,773
New York, but especially Hudson Valley, is another option for Gen X. The average home price is $460,876, which is much cheaper than New York City.
“The Hudson Valley offers a peaceful, scenic lifestyle with easy access to NYC,” Ryan said. “This allows Gen Xers to maintain professional ties to the city while enjoying a quieter suburban or semi-rural environment.”
Plus, there’s a lot to do in this area, including hiking and exploring new cuisines.
“In fact, many perceive the quality of life to be superior in the Hudson Valley,” Ryan said. “Additionally, property values in the Hudson Valley remain more approachable than other desirable regions that are close to Manhattan — such as … Fairfield County, Connecticut.”
Worst: California
Average cost of homes: $773,363
California is the second most expensive state in the country, second only to Hawaii. Everything, including housing, groceries and healthcare, ranks more expensive there than almost anywhere else in the U.S.
“Unless you have a significant amount of wealth or income stream, California is a tough place to retire for those on a fixed income,” Ryan said. “On the flip side, it can be a great place to invest in a home and make a return down the road, as homes have shown to retain their value through market cycles.”
For Gen Xers who don’t plan to retire just yet, California could be worth considering — just with careful financial planning.
Worst: Hawaii
Average cost of homes: $850,343
According to Ryan, Hawaii also ranks as one of the worst states for Gen X to buy a home. Hawaii has a progressive state income tax ranging from 1.4% to 11%. It’s also the most expensive state to live in.
Homes are also pricey — something that’s not helped by the fact that land is limited for new development.
Average home price costs were sourced from Zillow.
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