Members of Generation Z—Americans born in the mid-'90s—are attending college, starting their careers, and now even entering homeownership for the first time. Gen Zers may barely make up 10% of the potential home buyers in some of the nation’s largest metros, but as more reach adulthood, housing analysts call them a generation to watch.
LendingTree recently analyzed mortgage purchase requests made across the nation’s 50 largest metropolitan areas by people ages 18 to 23 on its online marketplace in 2020.
The three metros where Gen Zers are making the largest percentage of purchase requests, per the study: Salt Lake City, Oklahoma City, and Indianapolis. On the other hand, in pricier enclaves such as San Francisco, New York City, and San Jose, Calif., Gen Zers account for the smallest percentage of purchase requests.
Saving for a down payment can be the biggest hurdle for first-time home buyers. In a separate survey, LendingTree found that 84% of Gen Zers are receiving some sort of down payment assistance:
- 34% reported getting help from a parent.
- 24% reported getting help from a friend or a family member who isn’t a parent.
- 13% reported getting help from their employer.
- 13% reported getting help from a down payment assistance program.
Source: LendingTree
