How Gen Z is breaking into the housing market and where

How Gen Z is breaking into the housing market and where

For years, the narrative has been that Gen Z—the generation born roughly between 1997 and 2012—would never buy homes, tamped down by student loans, rising rents, and skyrocketing home prices. But recent data tells a different story: even with major challenges, many young buyers are finding creative ways to enter the market.

Gen Z now makes up a growing slice of homebuyers, often prioritizing affordability, lifestyle flexibility, and remote-work-friendly locations over traditional big-city hubs. So, how are they doing it, and where are they buying? Find a Neighborhood breaks it down.

Is Gen Z Really Buying Houses?

Yes, but not without hurdles. Gen Z is entering the housing market earlier than many expected, with some buyers purchasing homes in their early to mid-20s. According to Redfin, 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.

What sets this generation apart is their willingness to adapt. Many are looking beyond coastal metros to smaller, more affordable cities. They’re also prioritizing lifestyle factors such as walkability and community over square footage. Some are even taking advantage of flexible work arrangements to move to lower-cost regions.

How Is Gen Z Buying Homes?

The path to homeownership looks a little different for Gen Z compared with previous generations. Some key strategies include:

• Family assistance and gifts. Many rely on financial help from parents or relatives for down payments.
• Dual-income purchasing. Young couples or even friends are pooling resources to qualify for mortgages.
• Remote work relocation. With more jobs offering flexibility, Gen Z can shop in lower-cost areas while still keeping higher-paying jobs in big-city markets.
• Creative financing. Options like FHA loans, down-payment assistance programs, or co-buying platforms are making first homes more attainable.
• Side hustles and savings apps. This generation is also more likely to use gig economy income or budgeting tools to boost savings toward a down payment.

Where Gen Z is Investing the Most in Housing

To get a clearer picture of where Gen Z is actively entering the housing market, we can look at data on mortgage requests from young buyers. According to a 2024 report by LendingTree, certain U.S. metros see a higher share of mortgage inquiries from Gen Z.

The list below highlights the cities where young buyers are most active, based on the percentage of mortgage requests originating from this age group. These 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

Holding 24.79% of mortgage requests, Salt Lake City ranks high for Gen Z homebuyers. With a median home price of $400,000, the city's tech industry and outdoor lifestyle attract young professionals looking to settle down.

Milwaukee, WI

With 24.33% of mortgage requests from Gen Z, 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 high 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 for first-time homeowners.

Omaha, NE

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

Finding the Right Neighborhood

When it comes to buying a home, the city is only part of the picture—the neighborhood can make all the difference. Gen Z buyers in particular are looking for areas that fit their lifestyle, whether that means walkable streets, local coffee shops, easy access to public transit, or nearby parks and outdoor spaces. Safety, community vibe, and proximity to work or school also rank high on the priority list.

For anyone looking to buy a home, it often helps to explore multiple neighborhoods, compare local amenities, and get a feel for the culture and pace of life.

Luckily, online neighborhood search tools can make this process much easier by letting you search for neighborhoods based on criteria like average home price, school quality, or commute times.

Approaching neighborhood research this way helps you make smarter choices while increasing the chances that your first home will be a place you love living in, not just a place you own.

Key Takeaways

While Gen Z faces unique challenges in today’s housing market, they’re proving to be resourceful, creative, and determined buyers. By thinking outside traditional hotspots and using new approaches to finance, this generation is carving its own path to homeownership.

No matter where you’re starting from, the key takeaway is clear: with the right strategy and the right location, cracking the housing market isn’t just possible—it’s already happening.

This story was produced by Find a Neighborhood and reviewed and distributed by Stacker.