Buying a home is out of the cards for most young people, thanks to high mortgage rates, expensive home prices, inflation, student loan debt and job insecurity. In fact, almost 60% of parents with adult children helped their kids financially in 2023. But while home ownership is off the table for many, it hasn’t stopped all Gen Z homebuyers; According to Redfin, 30% of 25-year-olds in 2022 owned their own home, compared to 28% of millennials and 27% of Gen Xers when they were 25.
Where young Americans stand a chance of owning a home depends largely on location, and a recent study from Point2 Homes has determined the top ten U.S. cities where it’s easier for Gen Z to become homeowners. To determine the feasibility of Gen Z homeownership in the country’s 100 major cities, Point 2 Homes compared several metrics.
- Home Price-to-Income Ratio
- Median Sale Price Difference
- Inventory (per 10,000 residents)
- Share of Homes Sold Above Listing Price
- Days on Market
- Homeownership Rate
- Unemployment Rate
10 best places for Gen Z to buy a home
The study found that these ten cities had the highest chance of home ownership for Gen Z adults.
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- 1. Fort Wayne, Indiana
- 2. Corpus Christi, Texas
- 3. Detroit, Michigan
- 4. Laredo, Texas
- 5. Memphis, Tennessee
- 6. Lincoln, Nebraska
- 7. Durham, North Carolina
- 8. Fort Worth, Texas
- 9. Aurora, Colorado
- 10. Scottsdale, Arizona
The South and the Midwest appear to be the two regions where homeownership is most attainable for the younger generations. Average home prices in Laredo, TX, Memphis, TN, Lincoln, NE, and Durham, NC, are around five times Gen Z’s median income, attracting young buyers. Fort Wayne, Indiana made the top of the list thanks to its home price-to-income ratio and low Gen Z unemployment rate. Despite having a higher youth unemployment rate than a number of the other cities, Detroit makes up for it by having an impressive 6.10% decrease in home prices and the best home price-to-income ratio.
Use our tool below, in partnership with Bankrate, to compare today's best mortgage rates.
10 worst places for Gen Z to buy a home
At the other end of the spectrum are the cities where it’s the hardest for Gen Z to become homeowners.
- 1. Fremont, California
- 2. San Diego, California
- 3. Lexington, Kentucky
- 4. San Jose, California
- 5. Riverside, California
- 6. Los Angeles, California
- 7. Sacramento, California
- 8. Chula Vista, California
- 9. Richmond, Virginia
- 10. Newark, New Jersey
As a young person, becoming a homeowner in California is extremely difficult. Home prices in Fresno are almost 23 times the average young person’s household income, and the cost of living there is 77% higher than the national average, reports Point2 Homes. Fremont, Riverside, San Diego and San Jose all were found to have low homeownership rates among Gen Z, high unemployment rates among the younger generation, limited inventory for housing and increasing sale prices.
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