Although the Gen Z demographic of adults between 18 and 25 only accounts for an average of 14.91% of potential homebuyers in the nation’s 50 largest metros, there are some markets where these youthful house hunters are on the prowl and others where they are at endangered species level.
According to a new study from LendingTree (NASDAQ:TREE) of homebuying data from 2022, Salt Lake City has the largest share of Gen Z mortgage requests at 22.59%.
“Though the average mortgage amount in Salt Lake City is higher than in many of the nation’s other large metros, it’s a hot spot for younger homebuyers, likely owing to — among other factors — its strong jobs market and a good blend of urban and rural amenities,” observed LendingTree Senior Economist Jacob Channel.
The relatively inexpensive metros Oklahoma City and Birmingham, Alabama, were the next most popular metros at 22.36% and 20.79%, respectively. At the other end of the spectrum, the expensive metros San Francisco, New York City and San Jose had the smallest percentage of mortgages are being requested by Gen Zers at 7.76%, 8.88% and 9.70%, respectively. Six of the 10 least popular metros for potential Gen Z buyers were in California.
“Down payment amounts also vary by metro,” added Channel. “There’s a $59,034 difference between the average down payment among potential Gen Z homebuyers of $77,786 in San Jose and $18,752 in Oklahoma City. In San Jose, the average mortgage amount offered to Gen Zers is $541,436. That’s $347,836 more than the $193,600 average in Cleveland, where potential Gen Z homebuyers borrow the least.”
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