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The Most Popular Cities for Gen Z Homebuyers

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Some Gen Zers are looking to buy homes

Despite the ongoing economic turmoil wrought by the COVID-19 outbreak, many members of Generation Z (born after 1996) are attending college, starting their careers and even buying homes for the first time.

Gen Zers comprise just under 10% of potential homebuyers in any of the nation’s largest metros. But as the economy recovers and more of them reach adulthood, Gen Zers are poised to make an even greater mark on the housing market. While their overall impact on housing may be hard to predict, it’s clear that some Gen Zers are eager to join the ranks of homeowners sooner rather than later.

To determine where Gen Zers are looking to buy homes, LendingTree analyzed mortgage purchase requests made across the nation’s 50 largest metros by people aged 18 to 23 on its online marketplace between Jan. 1, 2020 and Oct. 1, 2020.

Mortgage concept
FabioBalbi / iStock

Nearly 1/4 of Gen Zers report receiving no down payment assistance

One of the biggest challenges a potential homebuyer faces is affording a down payment on a home. This is especially true for younger homebuyers who usually lack the savings to make a substantial down payment without any help.

So how are Gen Zers managing to make down payments?

A recent survey by LendingTree found that 84% of Gen Zers surveyed are receiving some sort of down payment assistance. Of that number:

  • 34% reported getting help from a parent
  • 24% reported getting help from a friend or a family member who wasn’t a parent
  • 13% reported getting help from their employer
  • 13% reported getting help from a down payment assistance program
Young homeowners in new home
Prostock-Studio / iStock

Homebuying tips for Gen Zers

In many parts of the country, home prices have continued to climb as inventory has remained low. Here are tips to help you gain an edge when making an offer on a home:

  • Boost your credit scores and savings. Because it’s a competitive seller’s market in many areas, would-be homebuyers need strong credit scores and substantial cash for a down payment in order to make a purchase. Build your homebuying fund now, and check your credit report and scores to ensure there are no errors. Improve your scores by making on-time payments each month and paying down your balances to lower your debt load.
  • Shop around for a mortgage. Before you shop for a home, shop around for a mortgage and get preapproved. This will help you pinpoint how much home you can afford and narrow down your home loan options. Compare rates and loan terms from at least three to five different lenders.
  • Consider first-time buyer programs. Look into programs available to first-time homebuyers that offer low down-payment options. These programs can help make purchasing a home with a lower credit score or small down payment more attainable.
Homebuying concept
depositphotos.com

Methodology

To conduct this study, LendingTree analyzed mortgage requests from borrowers aged 18 to 23 years from Jan. 1, 2020 to Oct. 1, 2019, along with requests from the overall population of mortgage seekers.

The city rankings are generated from the percentage of total purchase mortgage requests received by LendingTree from borrowers in the Gen Z generation.

Survey data comes from a survey commissioned by Qualtrics, an experience management firm, which conducted a survey of 62 Gen Zers from April 23-30, 2020. Numbers from the survey were rounded to the nearest whole number.

San Francisco
DepositPhotos.com

50. San Fransisco

Percentage of purchase requests (Gen Z): 2.19%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $575,723

Average down payment (Gen Z): $124,530

Average credit score (Gen Z): 710

San Jose, California
DepositPhotos.com

49. San Jose, California

Percentage of purchase requests (Gen Z): 2.98%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $480,970

Average down payment (Gen Z): $84,163

Average credit score (Gen Z): 707

New York
DepositPhotos.com

48. New York

Percentage of purchase requests (Gen Z): 3.30%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $318,927

Average down payment (Gen Z): $65,290

Average credit score (Gen Z): 691

Washington D.C.
dkfielding

47. Washington, D.C.

Percentage of purchase requests (Gen Z): 3.47%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $279,566

Average down payment (Gen Z): $45,898

Average credit score (Gen Z): 681

Hartford, Connecticut
DepositPhotos.com

46. Hartford, Connecticut

Percentage of purchase requests (Gen Z): 3.72%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $172,804

Average down payment (Gen Z): $23,324

Average credit score (Gen Z): 671

Los Angeles
iStock/choness

45. Los Angeles

Percentage of purchase requests (Gen Z): 3.87%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $392,572

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Average down payment (Gen Z): $63,240

Average credit score (Gen Z): 674Skip Ad

Miami
DepositPhotos.com

44. Miami

Percentage of purchase requests (Gen Z): 3.94%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $221,245

Average down payment (Gen Z): $34,664

Average credit score (Gen Z): 660

Boston
DepositPhotos.com

43. Boston

Percentage of purchase requests (Gen Z): 4.02%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $298,445

Average down payment (Gen Z): $51,396

Average credit score (Gen Z): 683

New Orleans
iStock/:Sean Pavone

42. New Orleans

Percentage of purchase requests (Gen Z): 4.28%

Average age of potential buyers (Gen Z): 21.4

Average requested loan amount (Gen Z): $187,853

Average down payment (Gen Z): $26,865

Average credit score (Gen Z): 650

San Diego
DepositPhotos.com

41. San Diego

Percentage of purchase requests (Gen Z): 4.45%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $364,341

Average down payment (Gen Z): $52,592

Average credit score (Gen Z): 681

Providence, Rhode Island
iStock

40. Providence, Rhode Island

Percentage of purchase requests (Gen Z): 4.47%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $205,092

Average down payment (Gen Z): $28,650

Average credit score (Gen Z): 670

Raleigh, North Carolina
iStock/Mark Howard

39. Raleigh, North Carolina

Percentage of purchase requests (Gen Z): 4.55%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $193,624

Average down payment (Gen Z): $27,998

Average credit score (Gen Z): 669

Chicago
dibrova

38. Chicago

Percentage of purchase requests (Gen Z): 4.57%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $180,381

Average down payment (Gen Z): $25,802

Average credit score (Gen Z): 661

Las Vegas
DepositPhotos.com

37. Las Vegas

Percentage of purchase requests (Gen Z): 4.57%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $230,065

Average down payment (Gen Z): $31,135

Average credit score (Gen Z): 662

Seattle
Credit: aiisha5 / iStock

36. Seattle

Percentage of purchase requests (Gen Z): 4.59%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $286,921

Average down payment (Gen Z): $41,177

Average credit score (Gen Z): 676

Philadelphia
DepositPhotos.com

35. Philadelphia

Percentage of purchase requests (Gen Z): 4.60%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $180,326

Average down payment (Gen Z): $29,303

Average credit score (Gen Z): 659

Tampa, Florida
Deposit Photos

34. Tampa, Florida

Percentage of purchase requests (Gen Z): 4.68%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $173,613

Average down payment (Gen Z): $24,555

Average credit score (Gen Z): 657

Richmond, Virginia
DepositPhotos.com

33. Richmond, Virginia

Percentage of purchase requests (Gen Z): 4.70%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $185,833

Average down payment (Gen Z): $25,722

Average credit score (Gen Z): 657

Orlando, Florida
DepositPhotos.com

32. Orlando, Florida

Percentage of purchase requests (Gen Z): 4.76%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $201,082

Average down payment (Gen Z): $25,606

Average credit score (Gen Z): 656

Sacramento, California
DepositPhotos.com

31. Sacramento, California

Percentage of purchase requests (Gen Z): 4.80%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $262,349

Average down payment (Gen Z): $38,240

Average credit score (Gen Z): 678

Atlanta
Deposit Photos

30. Atlanta

Percentage of purchase requests (Gen Z): 4.80%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $182,526

Average down payment (Gen Z): $26,604

Average credit score (Gen Z): 652

Houston
Deposit Photos

29. Houston

Percentage of purchase requests (Gen Z): 4.91%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $184,368

Average down payment (Gen Z): $30,087

Average credit score (Gen Z): 660

Baltimore
iStock/Sean Pavone

28. Baltimore

Percentage of purchase requests (Gen Z): 4.92%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $219,208

Average down payment (Gen Z): $33,654

Average credit score (Gen Z): 670

Memphis, Tennesee
DepositPhotos.com

27. Memphis, Tennessee

Percentage of purchase requests (Gen Z): 4.94%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $145,017

Average down payment (Gen Z): $21,091

Average credit score (Gen Z): 644

Jacksonville, Florida
iStock/Allen Allnoch

26. Jacksonville, Florida

Percentage of purchase requests (Gen Z): 5%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $164,837

Average down payment (Gen Z): $19,969

Average credit score (Gen Z): 653

Riverside, California
iStock/MattGush

25. Riverside, California

Percentage of purchase requests (Gen Z): 5.06%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $257,385

Average down payment (Gen Z): $34,133

Average credit score (Gen Z): 661

Austin, Texas
Deposit Photos

24. Austin, Texas

Percentage of purchase requests (Gen Z): 5.10%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $230,349

Average down payment (Gen Z): $32,648

Average credit score (Gen Z): 681

Denver
DepositPhotos.com

23. Denver

Percentage of purchase requests (Gen Z): 5.11%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $288,832

Average down payment (Gen Z): $38,269

Average credit score (Gen Z): 665

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San Antonio
DepositPhotos

22. San Antonio, Texas

Percentage of purchase requests (Gen Z): 5.22%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $184,058

Average down payment (Gen Z): $23,214

Average credit score (Gen Z): 651

Charlotte, North Carolina
Sean Pavone / iStock

21. Charlotte, North Carolina

Percentage of purchase requests (Gen Z): 5.24%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $176,340

Average down payment (Gen Z): $23,256

Average credit score (Gen Z): 655

Milwaukee
DepositPhotos.com

20. Milwaukee

Percentage of purchase requests (Gen Z): 5.29%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $170,280

Average down payment (Gen Z): $25,036

Average credit score (Gen Z): 663

Dallas
typhoonski

19. Dallas

Percentage of purchase requests (Gen Z): 5.42%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $198,712

Average down payment (Gen Z): $25,914

Average credit score (Gen Z): 658

Virginia Beach, Virginia
DenisTangneyJr

18. Virginia Beach, Virginia

Percentage of purchase requests (Gen Z): 5.60%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $192,307

Average down payment (Gen Z): $21,215

Average credit score (Gen Z): 647

Birmingham, Alabama
iStock/SeanPavonePhoto

17. Birmingham, Alabama

Percentage of purchase requests (Gen Z): 5.67%

Average age of potential buyers (Gen Z): 22

Average requested loan amount (Gen Z): $145,292

Average down payment (Gen Z): $17,270

Average credit score (Gen Z): 641

Portland, Oregon
JPLDesigns / iStock

16. Portland, Oregon

Percentage of purchase requests (Gen Z): 5.73%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $254,936

Average down payment (Gen Z): $31,648

Average credit score (Gen Z): 664

Nashville, Tennessee
iStock

15. Nashville, Tennessee

Percentage of purchase requests (Gen Z): 5.88%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $208,064

Average down payment (Gen Z): $27,374

Average credit score (Gen Z): 668

Pittsburgh
Joecho-16 / iStock

14. Pittsburgh

Percentage of purchase requests (Gen Z): 5.97%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $131,433

Average down payment (Gen Z): $18,078

Average credit score (Gen Z): 662

Cleveland
DepositPhotos.com

13. Cleveland

Percentage of purchase requests (Gen Z): 6.10%

Average age of potential buyers (Gen Z): 21.9

Average requested loan amount (Gen Z): $123,754

Average down payment (Gen Z): $16,885

Average credit score (Gen Z): 656

Detroit
iStock/espiegle

12. Detroit

Percentage of purchase requests (Gen Z): 6.30%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $144,949

Average down payment (Gen Z): $21,789

Average credit score (Gen Z): 660

Columbus, Ohio
iStock/Sean Pavone

11. Columbus, Ohio

Percentage of purchase requests (Gen Z): 6.60%

Average age of potential buyers (Gen Z): 21.8

Average requested loan amount (Gen Z): $149,108

Average down payment (Gen Z): $18,234

Average credit score (Gen Z): 654

Buffalo, NY
Deposit Photos

10. Buffalo, New York

Percentage of purchase requests (Gen Z): 6.73%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $128,775

Average down payment (Gen Z): $17,571

Average credit score (Gen Z): 655

St Louis
iStock/Sean Pavone

9. St. Louis

Percentage of purchase requests (Gen Z): 6.75%

Average age of potential buyers (Gen Z): 21.7

Average requested loan amount (Gen Z): $146,474

Average down payment (Gen Z): $18,741

Average credit score (Gen Z): 653

Louisville, Ky
Deposit Photos

8. Louisville, Kentucky

Percentage of purchase requests (Gen Z): 6.88%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $144,405

Average down payment (Gen Z): $21,439

Average credit score (Gen Z): 652

Phoenix
Sean Pavone / iStock

7. Phoenix

Percentage of purchase requests (Gen Z): 6.89%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $229,447

Average down payment (Gen Z): $30,620

Average credit score (Gen Z): 663

Kansas City, Missouri
iStock/Sean Pavone

6. Kansas City, Missouri

Percentage of purchase requests (Gen Z): 6.91%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $150,899

Average down payment (Gen Z): $18,090

Average credit score (Gen Z): 656

Minneapolis
iStock/RudyBalasko

5. Minneapolis

Percentage of purchase requests (Gen Z): 7.14%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $199,563

Average down payment (Gen Z): $25,548

Average credit score (Gen Z): 672

Cincinnati
aceshot / iStock

4. Cincinnati

Percentage of purchase requests (Gen Z): 7.38%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $143,525

Average down payment (Gen Z): $18,331

Average credit score (Gen Z): 651

Indianapolis
iStock/Sean Pavone

3. Indianapolis

Percentage of purchase requests (Gen Z): 7.74%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $146,349

Average down payment (Gen Z): $18,904

Average credit score (Gen Z): 650

Oklahoma City
DepositPhotos.com

2. Oklahoma City

Percentage of purchase requests (Gen Z): 8.01%

Average age of potential buyers (Gen Z): 21.6

Average requested loan amount (Gen Z): $141,396

Average down payment (Gen Z): $19,130

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Average credit score (Gen Z): 652

Salt Lake City
iStock/Sean Pavone

1. Salt Lake City

Percentage of purchase requests (Gen Z): 8.47%

Average age of potential buyers (Gen Z): 21.5

Average requested loan amount (Gen Z): $244,365

Average down payment (Gen Z): $32,961

Average credit score (Gen Z): 672

This article originally appeared on LendingTree.com and was syndciated by MediaFeed.org.




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