Gen Z buyers represent a ‘growing splash’

Leveraging data from 890,000 unique users, LendingTree released new research on Gen Z from calendar year 2021 on where they are most likely to move after graduating and leaving home.

Gen Z, born between 1997-2012 and now aged 18-24, is beginning to see its first wave of buyers and, by all available data, is more likely to leave its region or state to find housing conditions. ideal lives, somewhat helped. through the adoption of remote work.

According to their account, Gen Z only made up 10% of all purchases, but is making an “increasing splash” as more of the generation gets older.

The most popular city for Gen Z to buy property was Salt Lake City, Utah for the second year in a row. In this city, 16.60% of all shoppers were in the Gen Z age bracket, while at the other end of the scale, San Francisco, California was the city with the least Gen Z buyers, with just 3.64% of mortgages going to them. .

The top three cities Gen Z travels to and their stats are:

Salt Lake City, UT

  • Share of mortgages offered to Gen Zers: 16.60%
  • Average age of Gen Z homebuyers: 21.82
  • Average Credit Score of Gen Z Homebuyers: 701
  • Average down payment among Gen Z homebuyers: $28,874
  • Average loan amount requested among Gen Z homebuyers: $291,952

Louisville, Kentucky

  • Share of mortgages offered to Gen Zers: 15.68%
  • Average age of Gen Z homebuyers: 22.09
  • Average Credit Score of Gen Z Homebuyers: 699
  • Average down payment among Gen Z homebuyers: $14,268
  • Average loan amount requested among Gen Z homebuyers: $171,773

Oklahoma City, Oklahoma

  • Share of mortgages offered to Gen Zers: 15.34%
  • Average age of Gen Z homebuyers: 22.17
  • Average Credit Score of Gen Z Homebuyers: 697
  • Average down payment among Gen Z homebuyers: $19,690
  • Average loan amount requested among Gen Z homebuyers: $173,752

All of the bottom 10 metro areas with the fewest Gen Z shoppers were on the Atlantic or Pacific coasts. The bottom three metropolitan areas were:

San Francisco, California

  • Share of mortgages offered to Gen Zers: 3.64%
  • Average age of Gen Z homebuyers: 22.53
  • Average Credit Score of Gen Z Homebuyers: 723
  • Average down payment among Gen Z homebuyers: $42,933
  • Average loan amount requested among Gen Z homebuyers: $408,005

New York, New York

  • Share of mortgages offered to Gen Zers: 4.41%
  • Average age of Gen Z homebuyers: 22.53
  • Average Credit Score of Gen Z Homebuyers: 717
  • Average down payment among Gen Z homebuyers: $31,877
  • Average loan amount requested among Gen Z homebuyers: $302,268

San Jose, California

  • Share of mortgages offered to Gen Zers: 4.53%
  • Average age of Gen Z homebuyers: 10:44 p.m.
  • Average Credit Score of Gen Z Homebuyers: 722
  • Average down payment among Gen Z homebuyers: $48,041
  • Average loan amount requested among Gen Z homebuyers: $425,545

Other key points from the report include:

  • The average credit score of Gen Z mortgage borrowers can vary widely across the United States. The average credit score for Gen Z homebuyers is highest in San Francisco at 723 – 31 points above the average score where it is lowest (New Orleans).
  • The amounts of the installments also vary according to the metro. There’s a $35,155 difference between the average down payment for Gen Z homebuyers in Los Angeles and New Orleans, where they’re the highest and lowest, respectively, in the 50 largest metros.
  • Like credit scores and down payments, mortgage amounts can also vary widely depending on where buyers live. In San Jose, Calif., where Gen Z homebuyers get the largest mortgages, the average loan size offered to Gen Zers was $425,545. That’s $253,772 more than the average loan amount in Louisville, Ky., where Gen Z homebuyers are borrowing the least.

So what should Gen Z expect? Not much, if they are just starting the game. Rising prices and interest rates are already shutting many out of the market because their incomes are not as high due to the fact that they are just starting their career.

“Because of these challenges, many Gen Zers may consider cheaper alternatives to buying a home, such as renting or living with family,” LendingTree said. “Fortunately, while these more affordable options may be more attractive at the moment, Gen Zers will likely have more opportunities to become homebuyers over the next few years as their incomes rise and greater supply of housing will come on the market and drive prices down.”

Click here to view a list of the top 50 cities Gen Z are flocking to.

About Mallory Brown

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