Gen Z Buyers Drive VA Market In 2025

In a new study by Veterans United Home Loans, the VA loan program rebounded sharply in Fiscal Year 2025, reversing last year's slowdown, as total VA lending climbed 26.8% year-over-year, rising to 528,343 loans from 416,363 in Fiscal Year 2024. The report found that much of that momentum came from a steadier purchase market and a surge in refinancing, signaling renewed confidence among veterans and servicemembers navigating a still-challenging affordability landscape.

Generation Z played a major role in the VA program's resurgence during the fiscal year ending Sept. 30, as the youngest cohort of military buyers was the only age group to post year-over-year purchase gains in Fiscal Year 2024. They carried that momentum forward, accounting for 38% of VA loan activity in Fiscal Year 2025. Gen Z Veterans also led all other generations in purchase growth, far outpacing older military borrowers.

"Gen Z is expanding its footprint faster than any other group of VA buyers," said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. "They're entering the market at a time when affordability is a real challenge, and the VA loan's hard-earned benefits are helping them compete and succeed. Their growth is reshaping what the next decade of military homebuying will look like."

When broken down by generation, the report found that Gen Z purchase loans were at 34,616 in Fiscal Year 2024, rising to 47,802 in FY 2025, a 38% jump. Baby Boomer vets were a distant second place, with 43,272 utilizing VA purchase loans in FY 2024, compared to 46,285 in FY 2025, marking just a 6.96% jump. Millennial vets may have utilized their VA loan benefits the most, taking the third place spot, with 144,678 VA purchase loans made during FY 2025, compared to 152,513 in FY 2025, a 5.42% rise. The Silent & Greatest generation took out 4,993 VA loans in FY 2024 and 5,133 in FY 2025, a 2.8% increase. Lastly, Generation X took out a healthy 70,768 VA purchase loans in FY 2024, compared to 72,102 in FY 2025, a slight 1.89% rise.

Overall, VA purchase loans rose 8.5% year-over-year, to 323,835 from 298,327. This marks a strong turnaround from Fiscal Year 2024, when purchase volume fell more than 5% from Fiscal Year 2023.

While activity remains below historic highs from the pandemic era, refinancing again became a significant part of the VA lending landscape as borrowers sought opportunities to improve their rate or tap equity. Total VA refinances jumped 73.2% year-over-year, with cash-out refinances accounting for slightly over a quarter (26.5%) of refi activity.

The report found that the fastest-growing destinations for Gen Z VA buyers included major metros and traditional military hubs across Texas, the Carolinas, and California — markets that posted growth well above the national average for this age group, highlighting where the youngest veterans and servicemembers are choosing to settle down.

The top five markets for VA purchase loans year-over-year include:

• Houston-Sugar Land-Baytown, Texas, reporting a 60.5% YoY rise in VA purchase loans
• Killeen-Temple-Fort Hood, Texas, reporting a 59.4% YoY rise in VA purchase loans
• Phoenix-Mesa-Scottsdale, Arizona, reporting a 57.6% YoY rise in VA purchase loans
• Dallas-Fort Worth-Arlington, Texas, reporting a 55.9% YoY rise in VA purchase loans
• Las Vegas-Paradise, Nevada, reporting a 54.8% YoY rise in VA purchase loans

Based in Columbia, Missouri, Veterans United Home Loans is a full-service national direct lender having financed more than $23.8 billion in loans in Fiscal Year 2025.