21 cities where Gen Z homebuyers are moving nearby

21 cities where Gen Z homebuyers are moving nearby

Gen Z: The New Homebuyers Making their Mark

The housing market is currently facing challenges such as high home prices, low inventory, and rising mortgage rates. However, these obstacles haven’t deterred the youngest cohort of adults, Gen Z, from diving into homeownership. According to Zillow’s annual Consumer Housing Trend Report, 18% of successful homebuyers in the US this year belonged to Gen Z, ages 18 to 28. What’s interesting is that the hotspots for these young homebuyers are no longer coastal metropolises, but rather regions concentrated in the Midwest, upstate New York, and the South.

In 21 metropolitan areas, Gen Zers accounted for at least 20% of homebuyers between April and July, as revealed by Zillow. This trend shows that these areas are “punching a little bit above their weight” when it comes to attracting first-time homebuyers, especially among the younger generation. Manny Garcia, Zillow’s senior population scientist, noted that regions like the rust belt and the Midwest are gaining significant traction in the housing market.

For Gen Z, homeownership has become a priority due to the fears of financial insecurity that were deeply ingrained in millennials as they came of age during the Great Recession. Aidan Dobbins, a Gen Zer who purchased his Baltimore home at the age of 23, explained that his generation has internalized these fears. Owning a home is seen as a means of obtaining security and stability for the long term. Dobbins said, “It has almost morphed into motivation to be able to get your piece of the pie as soon as you can so that you can be secure for the rest of your life.”

Here are some of the regions with the highest share of Gen Z homebuyers, along with their respective home prices and average yearly income:

Note: The home prices mentioned above are based on data from Zillow, while the average yearly income for each metropolitan area is derived from the average hourly wage reported by the Bureau of Labor Statistics in May 2022.

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Despite the challenges faced by the housing market, Gen Z is making its mark as a significant force in the homebuying landscape. Their desire for financial security and stability motivates them to pursue homeownership at an earlier age than previous generations. These young homebuyers are shifting the focus away from coastal metropolises, finding attractive opportunities in regions that may have been overlooked in the past. The Midwest, upstate New York, and the South are now emerging as hotspots for Gen Z, demonstrating their determination and resilience in securing their own piece of the American Dream.

• gen z