Gen Zers are finally starting to break into the housing market. According to TransUnion, Gen Z mortgage originations jumped 84% at the end of last year, and if recent survey data from Freddie Mac rings true, those numbers should grow substantially over the coming years.
The GSE’s Generation Z Study shows that of Gen Zers — the cohort ranging in age from 8 to 23 — a whopping 89% plan to buy a home by age 30.
But where will that demand hit? A look at the top 15 cities for 2020 Gen Z homebuyers gives us an idea:
1. Salt Lake City
According to loan marketplace LendingTree, about 8.5% of all mortgage quote requests in Salt Lake City come from Gen Zers. The average age of those shoppers? Just over 21.
2. Oklahoma City
The capital of Oklahoma comes in as the second-most popular city for Generation Z homebuyers. It’s no wonder why, either. The average home price is in the area is just under $153,000, making it affordable for even the most strapped of budgets.
3. Indianapolis
Indianapolis sits at No. 3 on LendingTree’s list. About 7.7% of all mortgage shoppers in this midwestern city are in Generation Z, and home prices clock in at just over $165,000. Even better? The town was recently dubbed one of the best places for recent college graduates.
4. Cincinnati
Cincinnati is another hotspot for Gen Z, with 7.3% of its recent shoppers coming from the cohort. Like Indy, this one also made the list of best cities for college grads. Except this one? It took the crown.
5. Minneapolis
In Minneapolis, nearly 7% of the city’s mortgage requests are coming from Gen Z shoppers. On average, they’re looking for loans of just $150,000 — a clear testament to the area’s affordable home prices.
Other cities to make the list
Many of the other top spots for Gen Z were in the midwest or south. Rounding out the top 15 were Kansas City, Mo.; Phoenix; St. Louis; Louisville, Ky.; Buffalo, New York; Columbus, Ohio; Detroit; Cleveland; Pittsburgh; and Nashville, Tenn.
Read more on Housing Wire.
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