Those on the older end of Generation Z—those born between 1997 and 2012—are now of age to attend college, start their careers and buy their first homes. But where they looking to buy?
A new study by LendingTree aims to answer that question through analysis of mortgage offers given last year to adult Gen Z users of its platform across the nation’s 50 largest metros. Its new report shows adult Gen Zers account for an average of 10% of homebuyers. Here’s what else the study found.
Some key findings:
- Salt Lake City, Utah retains its number one spot from last year’s rankings as the most popular metro for Gen Zers. 16.60% of mortgage offers there go to Gen Zers.
- Louisville, Kentucky, and Oklahoma City, Oklahoma are the next most popular metros among Gen Z buyers.
- As was the case in last year’s ranking, San Francisco, California is the least popular among Gen Z buyers, with only 3.64% of mortgage offers going to members of that generation.
- There’s a $35,155 difference between the average down payment among Gen Z homebuyers in Los Angeles, California and New Orleans, Louisiana, where they’re the highest and the lowest, respectively, across the 50 largest metros.
“While Gen Zers don’t make up a huge portion of homebuyers in the nation’s largest metros, their numbers are growing,” said Jacob Channel, senior economic analyst and report author. “And, like millennials before them, they’re poised to become one of the biggest forces in the housing market over the next few decades. Though Gen Zers old enough to buy a house in the near future will likely face headwinds including high home prices and rising mortgage rates, our study illustrates that becoming a homeowner is still possible for many members of the generation.”
To view the full report and city rankings, click here.