Gen Z homebuyers, who are now entering the housing market amid soaring mortgage levels and low supply, can still afford to buy a home in 20 states across the country, a recent study found.
The study, published by online real-estate marketplace Point2, looked at the 100 largest metropolitan areas in the U.S. and ranked them based on how friendly they are to potential homebuyers under the age of 25. The study found that Gen Z's have hope to purchase homes in the Midwest and South, with Fort Wayne, Indiana, offering the best chance.
"Student loans and the rising cost of living means that Gen Z inherited the affordability concern from millennials," the company said in the report. "So, when we factor in multiple metrics that might influence the attainability of homeownership for young people - such as household income among adults younger than 25 years old, Gen Z homeownership rate, and unemployment rate among this cohort - some cities emerge as homebuying pockets for America's youngest."
Top 20 Cities for Gen Z Homebuyers
Below, we've listed the top 20 cities on Point2's index. We've included the local home price-to-income ratio, Gen Z homeownership rates, and Gen Z unemployment rates. We've also included the median listing price data of homes in each city according to Redfin.
1. Fort Wayne, IN
Median listing price: $275,000
Home price-to-income ratio: 4.8
Gen Z homeownership rates: 13.9%
Gen Z unemployment rates: 4.1%
2. Corpus Christi, TX
Median listing price: $309,000
Home price-to-income ratio: 4.5
Gen Z homeownership rates: 12.5%
Gen Z unemployment rates: 7.8%
3. Detroit, MI
Median listing price: $85,000
Home price-to-income ratio: 3.1
Gen Z homeownership rates: 16.7%
Gen Z unemployment rates: 11%
4. Laredo, TX
Median listing price: $247,700
Home price-to-income ratio: 5.1
Gen Z homeownership rates: 14.5%
Gen Z unemployment rates: 7.9%
5. Memphis, TN
Median listing price: $194,000
Home price-to-income ratio: 5.3
Gen Z homeownership rates: 10.6%
Gen Z unemployment rates: 8.1%
6. Lincoln, NE
Median listing price: $341,100
Home price-to-income ratio: 6.9
Gen Z homeownership rates: 12.8%
Gen Z unemployment rates: 4%
7. Durham, NC
Median listing price: $425,000
Home price-to-income ratio: 6.4
Gen Z homeownership rates: 11.5%
Gen Z unemployment rates: 1.5%
8. Fort Worth, TX
Median listing price: $340,000
Home price-to-income ratio: 7.9
Gen Z homeownership rates: 8.9%
Gen Z unemployment rates: 6.1%
9. Aurora, CO
Median listing price: $499,900
Home price-to-income ratio: 8.3
Gen Z homeownership rates: 13.9%
Gen Z unemployment rates: 6%
10. Scottsdale, AZ
Median listing price: $1.1M
Home price-to-income ratio: 12.4
Gen Z homeownership rates: 17.5%
Gen Z unemployment rates: 3.5%
11. Indianapolis, IN
Median listing price: $250,000
Home price-to-income ratio: 5.9
Gen Z homeownership rates: 12.3%
Gen Z unemployment rates: 7.2%
12. Orlando, FL
Median listing price: $385,000
Home price-to-income ratio: 8.5
Gen Z homeownership rates: 8.3%
Gen Z unemployment rates: 3.6%
13. Mesa, AZ
Median listing price: $489,300
Home price-to-income ratio: 9.0
Gen Z homeownership rates: 14.8%
Gen Z unemployment rates: 5.0%
14. Oklahoma City, OK
Median listing price: $299,900
Home price-to-income ratio: 7.5
Gen Z homeownership rates: 9.9%
Gen Z unemployment rates: 5.1%
15. Jacksonville, FL
Median listing price: $308,900
Home price-to-income ratio: 6.8
Gen Z homeownership rates: 14.2%
Gen Z unemployment rates: 7.9%
16. San Antonio, TX
Median listing price: $299,000
Home price-to-income ratio: 7.1
Gen Z homeownership rates: 8%
Gen Z unemployment rates: 8.9%
17.Garland, TX
Median listing price: $335,000
Home price-to-income ratio: 5.1
Gen Z homeownership rates: 13.1%
Gen Z unemployment rates: 9.5%
18. Gilbert, AZ
Median listing price: $625,000
Home price-to-income ratio: 7.7
Gen Z homeownership rates: 21.4%
Gen Z unemployment rates: 1.6%
19. Denver, CO
Median listing price: $580,000
Home price-to-income ratio: 10.2
Gen Z homeownership rates: 8.9%
Gen Z unemployment rates: 1.5%
20. Colorado Springs, CO
Median listing price: $450,000
Home price-to-income ratio: 10.1
Gen Z homeownership rates: 8.4%
Gen Z unemployment rates: 3.5%
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