Gen Z Booms into Housing Market

• Gen Z booms into housing market finally after living with their parents and multiple roommates for years to get their piece of the American Dream.

• Those weighted down are taking the weight of student loans and rising rents away with creative financial options for new mortgages.

• Nearly 1-in-3 Gen Zers owned homes in 2023 and with declining home prices the numbers are growing more rapidly these days.

Gen Z, those born between 1997 and 2012 have been tapped out living with their parents or multiple roommates, but those days are changing as Gen Z is increasingly sick and tired of living in their parents basements as Generation Z booms into housing market.

Those weighted down by student loans, rising rents and skyrocketing home prices are making their way against the odds into the housing market. Gen Z is growing up and taking a slice of the housing market, according to a new study.

About 30% of 26-year-olds (the oldest Gen Zers) owned homes in 2023, despite challenges like student loan debt, tighter lending requirements and record-high housing costs, according to Redfin.

Many Gen Zers are making major changes to get their slice of the American Dream. With home prices in many areas declining, more cities are becoming affordable. Gen Z is buying in coastal metros and smaller, more affordable cities. Fort Myers and Cape Coral are two of the communities many Gen Zers are targeting. They are prioritizing lifestyle changes, including community over square footage. Conveniences like Starbucks are taking a back seat to other factors.

Sooner or later housing financial analysts reasoned Gen Z would make their move into the housing market, with some buyers purchasing homes in their early to mid-20s.

The path to homeownership looks a little different for Gen Z compared to previous generations. Many are working from home and have the capability to make changes. Some are relying on family financial assistance and gifts. Many rely on financial help from parents or relatives for down payments.

Young couples and friends are pooling resources to qualify for mortgages. With more jobs offering flexibility, Gen Z can buy homes in lower-cost areas while still keeping higher-paying jobs in big-city urban markets. Low down payment options like 3.5% down payment FHA loans, down-payment assistance programs or co-buying platforms are making starter homes more attainable.

Side hustles and savings apps are also helping as Generation Z moves into housing market. Gig economy income like making trips for Uber and budgeting tools are boosting savings toward a down payment.

The list below highlights five smaller urban cities where young buyers are most active followed by RedFin, based on the percentage of mortgage requests originating from Gen Zers. The numbers give insight into the regions where affordability, lifestyle, and job opportunities are aligning to make homeownership more attainable for first-time buyers.

Grand Rapids, MI

Leading the nation with 31.45% of mortgage requests from Gen Z, Grand Rapids boasts a median home price of $305,764. The city’s vibrant arts scene and expanding job market make it a hotspot for young buyers.

Salt Lake City, UT

Taking 24.79% of mortgage requests, Salt Lake City ranks second. With a median home price of $400,000, the city’s tech industry and outdoor lifestyle attracts young professionals.

Milwaukee, WI

With 24.33% of mortgage requests, Milwaukee offers a median home price of $400,000. Its strong job market and cultural amenities make it appealing for first-time homebuyers.

Des Moines, IA

With 21.4% of mortgage requests coming from Gen Z, Des Moines is on the list for young buyers. The city’s affordability—with median home prices around $267,000—combined with a strong job market in finance and insurance, makes it an attractive option.

Omaha, NE

Coming in at 21% Gen Z mortgage requests, Omaha offers a low median home price of $274,400. Its growing tech, insurance and healthcare sectors provide ample job opportunities, appealing to young professionals.

But when it comes to wanting a place closer to the coast and warm weather during the cold winter months up north, Fort Myers and Cape Coral are excellent choices with plenty of 3 and 4 bedroom homes in the $300,000 to $400,000 range. Need help finding an affordable option? Contact Mike Colpitts.