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.
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
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.
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.
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
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
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
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
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
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
Average down payment (Gen Z): $63,240
Average credit score (Gen Z): 674Skip Ad
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Average credit score (Gen Z): 652
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.
