Gen Z homebuyers accounted for a record-high 12% share of the VA purchase loan market during the first half of fiscal year 2025, triple their share from just three years ago.
According to an analysis of Department of Veterans Affairs data published by Veterans United Home Loans, the total VA loan volume is up 45% compared to the same period in 2024. VA purchase loans are up nearly 10%, while refinance activity soared by nearly 150%. This surge in volume was attributed Gen Z servicemembers and veterans, led all age demographics with a 459% year-over-year spike in VA refinance loans.
Gen Z homebuyers using VA loans are most concentrated near large military communities like San Antonio, Virginia Beach, and Colorado Springs, where many are purchasing their first homes soon after separation or while still serving.
Nationwide, Gen Z comprises only 3% of the overall mortgage market last year, according to National Association of Realtors data.
“This kind of momentum shows just how powerful the VA loan benefit continues to be,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “Young veterans are stepping into the market with confidence, and this program is helping them overcome hurdles that might otherwise sideline their homebuying journey.”
Nonetheless, millennials still dominated VA lending, accounting for nearly half (48%) of all VA purchase loans and more than one-third (35%) of all VA loans since FY19.
