15 Places With the Most Gen Z Homebuyers

Editor's Note: This story originally appeared on Construction Coverage.

Although some unique, pandemic-related economic factors have contributed to the current state of the real estate market, some of the largest structural factors driving the current market are generational.

Baby boomers — those folks born between 1946 and 1964 — are increasingly choosing to age in place as they reach retirement. Simultaneously, millennials, who were born between 1981 and 1996, are now America’s largest generational cohort and at a peak age for buying a first or second home.

Together, these forces mean that more buyers are competing for fewer homes. And according to Freddie Mac, the supply of homes for sale was already at a record low prior to the COVID-19 pandemic.

Despite the residential real estate market showing signs of cooling off after a historic runup during the pandemic, finding a home remains challenging for many buyers. Intense competition and rising prices have made it especially difficult for young, first-time homebuyers to make a purchase.

For young adults in Generation Z interested in homeownership, some geographic locations prove more favorable than others.

The following are the top cities with the most homebuyers under age 25. The analysis was conducted by researchers at Construction Coverage using data from the Federal Financial Institutions Examination Council. For more information, refer to the methodology section.

1. Louisville/Jefferson County, KY-IN

• Under-25 share of home purchase loans: 7.9%
• Total under-25 home purchase loans: 1,116
• Median loan amount: $175,000
• Median loan-to-value ratio: 93.5%
• Median interest rate: 5.125%

2. Grand Rapids-Kentwood, MI

• Under-25 share of home purchase loans: 7.9%
• Total under-25 home purchase loans: 998
• Median loan amount: $205,000
• Median loan-to-value ratio: 92.7%
• Median interest rate: 5.375%

3. Cincinnati, OH-KY-IN

• Under-25 share of home purchase loans: 7.2%
• Total under-25 home purchase loans: 1,737
• Median loan amount: $175,000
• Median loan-to-value ratio: 92.6%
• Median interest rate: 5.250%

4. Detroit-Warren-Dearborn, MI

• Under-25 share of home purchase loans: 6.7%
• Total under-25 home purchase loans: 2,829
• Median loan amount: $175,000
• Median loan-to-value ratio: 93.1%
• Median interest rate: 5.375%

5. St. Louis, MO-IL

• Under-25 share of home purchase loans: 6.3%
• Total under-25 home purchase loans: 1,861
• Median loan amount: $165,000
• Median loan-to-value ratio: 92.6%
• Median interest rate: 5.375%

6. Birmingham-Hoover, AL

• Under-25 share of home purchase loans: 6.3%
• Total under-25 home purchase loans: 731
• Median loan amount: $185,000
• Median loan-to-value ratio: 93.5%
• Median interest rate: 5.375%

7. Indianapolis-Carmel-Anderson, IN

• Under-25 share of home purchase loans: 6.2%
• Total under-25 home purchase loans: 1,666
• Median loan amount: $195,000
• Median loan-to-value ratio: 93.5%
• Median interest rate: 5.490%

8. Cleveland-Elyria, OH

• Under-25 share of home purchase loans: 6.0%
• Total under-25 home purchase loans: 1,203
• Median loan amount: $155,000
• Median loan-to-value ratio: 91.8%
• Median interest rate: 5.250%

9. Buffalo-Cheektowaga, NY

• Under-25 share of home purchase loans: 6.0%
• Total under-25 home purchase loans: 547
• Median loan amount: $165,000
• Median loan-to-value ratio: 91.1%
• Median interest rate: 5.000%

10. Pittsburgh, PA

• Under-25 share of home purchase loans: 5.9%
• Total under-25 home purchase loans: 1,226
• Median loan amount: $155,000
• Median loan-to-value ratio: 92.6%
• Median interest rate: 5.125%

11. Salt Lake City, UT

• Under-25 share of home purchase loans: 5.9%
• Total under-25 home purchase loans: 808
• Median loan amount: $375,000
• Median loan-to-value ratio: 90.5%
• Median interest rate: 5.285%

12. Minneapolis-St. Paul-Bloomington, MN-WI

• Under-25 share of home purchase loans: 5.8%
• Total under-25 home purchase loans: 2,718
• Median loan amount: $255,000
• Median loan-to-value ratio: 93.4%
• Median interest rate: 5.250%

13. Kansas City, MO-KS

• Under-25 share of home purchase loans: 5.7%
• Total under-25 home purchase loans: 1,421
• Median loan amount: $195,000
• Median loan-to-value ratio: 93.5%
• Median interest rate: 5.250%

14. Rochester, NY

• Under-25 share of home purchase loans: 5.6%
• Total under-25 home purchase loans: 504
• Median loan amount: $155,000
• Median loan-to-value ratio: 90.7%
• Median interest rate: 5.250%

15. Milwaukee-Waukesha, WI

• Under-25 share of home purchase loans: 5.5%
• Total under-25 home purchase loans: 905
• Median loan amount: $205,000
• Median loan-to-value ratio: 90.5%
• Median interest rate: 5.125%

Methodology

The data used in this analysis is from the Federal Financial Institutions Examination Council’s 2022 Home Mortgage Disclosure Act.

To determine the locations with the most homebuyers under 25, researchers at Construction Coverage calculated the share of all home purchase loans taken out by applicants under 25 years old. Only conventional home purchase loans originated in 2022 were considered for this analysis.

In the event of a tie, the location with the greater total number of home purchase loans by applicants under 25 was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 residents were included.