As Gen Z adults — those aged 18-27 — are making their mark in the housing market, a report from online lending marketplace LendingTree shows stark geographic differences in where this youngest cohort of homebuyers is, and isn’t, looking to plant roots.
Drawing on mortgage purchase request data from its platform throughout all of 2024, LendingTree analyzed activity in the nation’s 50 largest metropolitan areas. The results showed Gen Z home shoppers are gravitating toward more affordable regions while steering clear of the nation’s pricier housing markets, but also illustrated some key differences.
Key Findings From The Report:
- Grand Rapids tops the list: Michigan’s Grand Rapids claims the highest share of mortgage requests from Gen Zers, with nearly one-third (31.45%) of all requests in 2024 coming from this demographic. Salt Lake City, Utah (24.79%) and Milwaukee, Wisc. (24.33%) round out the top three.
- Pricey Western metros see lowest Gen Z interest: In California, San Francisco ranked last, with Gen Zers making up just 9.68% of mortgage requests there — the only metro below the 10% mark. San Jose (11.31%) and Las Vegas, Nevada (12.07%) followed closely behind. Notably, six of the bottom ten metros for Gen Z mortgage purchase requests are in California.
- Down payments show stark contrast: In San Jose, Gen Z homebuyers expected to put down an average of $181,350. Compare that to Pittsburgh, where the average Gen Z down payment was just $29,916 — a difference of more than $150,000.
- Credit scores typically below 700: Only in San Francisco and San Jose, Calif. did Gen Zers have average credit scores above 700 (705 for each of those metros). Pittsburgh recorded the lowest average credit score for interested Gen Zers: 666.
- Loan requests reflect metro affordability: The average Gen Z mortgage request in San Jose, Calif. was $713,704 — more than four times higher than Pittsburgh’s $177,479 average.
LendingTree Chief Consumer Finance Analyst Matt Schulz attributed the generational migration patterns to the obvious: affordability and economic opportunity.
“Grand Rapids and Milwaukee are relatively average cost-of-living areas where homeownership may not be out of the question for younger people,” Schulz said. He noted that Salt Lake City’s booming tech scene and growing young population also play a role in its higher Gen Z interest.
As for the coastal laggards, Schulz points to high costs and lifestyle dynamics: “The cost of buying a house [in San Francisco and San Jose] is just so high that many young people see it as a pipe dream. Meanwhile, Las Vegas may be viewed as too transient for long-term roots.”
Even so, one California metro broke the mold: Fresno landed in the top 20, with 19.24% of its mortgage requests coming from Gen Zers, ranking the metro 18th overall.
The report underscores the widening disparity in housing affordability nationwide — and how it's shaping not only where Gen Zers are heading, but also where they’re choosing not to even look.
