Editor’s Note: This story originally appeared on Point2.
The number of Generation Z members is estimated at 69.58 million, or about 21% of the U.S. population. Born between 1997 and 2012, they’re already making their mark on American society.
And these up-and-comers are looking for a place to call their own where they make a difference. But where?
Moving out and getting your own place has never been easy. However, this is painfully true for America’s youngest, who have already faced a pandemic, crippling inflation, historically high mortgage rates and an overall turbulent economy.
The most recent Census data shows that the share of Gen Z householders (adults younger than 25) who own their home is less than 17%. Naturally, despite market hurdles, this percentage is only expected to continue to grow, just like the demographic itself.
To assess the feasibility of Gen Z homeownership in the country’s 100 major cities (including the five New York City boroughs), Point2 ranked them. Find details of the methodology at the end.
Here’s where young adults under 25 have the best chances of becoming homeowners.
1. Fort Wayne, IN
- Score (Out of 100): 84.20
- Home Price-to-Income Ratio: 4.8
- Home Price Change: −1.55%
- Inventory (per 10,000 residents): 23.9
- Home Sold Over Price: 25.3%
- Days on Market: 15
- Gen Z Unemployment Rate: 4.1%
- Gen Z Homeownership Rate: 13.9%
2. Corpus Christi, TX
- Score (Out of 100): 80.55
- Home Price-to-Income Ratio: 4.5
- Home Price Change: −0.05%
- Inventory (per 10,000 residents): 44.2
- Homes Sold Over Price: 16.2%
- Days on Market: 44
- Gen Z Homeownership Rate: 7.8%
- Gen Z Unemployment Rate: 12.5%
3. Detroit, MI
- Score (Out of 100): 80.53
- Home Price-to-Income Ratio: 3.1
- Home Price Change: −6.10%
- Inventory (per 10,000 residents): 42.7
- Homes Sold Over Price: 26.7%
- Days on Market: 38
- Gen Z Unemployment Rate: 11.0%
- Gen Z Homeownership Rate: 16.7%
4. Laredo, TX
- Score (Out of 100): 78.70
- Home Price-to-Income Ratio: 6.1
- Home Price Change: 0.00%
- Inventory (per 10,000 residents): 21.9
- Homes Sold Over Price: 0.0%
- Days on Market: 73
- Gen Z Unemployment Rate: 7.9%
- Gen Z Homeownership Rate: 14.5%
5. Memphis, TN
- Score (Out of 100): 77.00
- Home Price-to-Income Ratio: 5.3
- Home Price Change: −2.23%
- Inventory (per 10,000 residents): 26.8
- Homes Sold Over Price: 16.2%
- Days on Market: 46
- Gen Z Unemployment Rate: 8.1%
- Gen Z Homeownership Rate: 10.6%
6. Lincoln, NE
- Score (Out of 100): 75.18
- Home Price-to-Income Ratio: 6.9
- Home Price Change: 0.74%
- Inventory (per 10,000 residents): 22.4
- Homes Sold Over Price: 30.0%
- Days on Market: 21
- Gen Z Unemployment Rate: 4.0%
- Gen Z Homeownership Rate: 12.8%
7. Durham, NC
- Score (Out of 100): 73.48
- Home Price-to-Income Ratio: 6.4
- Home Price Change: 4.31%
- Inventory (per 10,000 residents): 32.3
- Homes Sold Over Price: 37.3%
- Days on Market: 38
- Gen Z Unemployment Rate: 1.5%
- Gen Z Homeownership Rate: 11.5%
8. Fort Worth, TX
- Score (Out of 100): 73.13
- Home Price-to-Income Ratio: 7.9
- Home Price Change: −2.94%
- Inventory (per 10,000 residents): 44.1
- Homes Sold Over Price: 19.4%
- Days on Market: 41
- Gen Z Unemployment Rate: 6.1%
- Gen Z Homeownership Rate: 8.9%
9. Aurora, CO
- Score (Out of 100): 72.78
- Home Price-to-Income Ratio: 8.3
- Home Price Change: −1.09%
- Inventory (per 10,000 residents): 30.7
- Homes Sold Over Price: 25.5%
- Days on Market: 27
- Gen Z Unemployment Rate: 6.0%
- Gen Z Homeownership Rate: 13.9%
10. Scottsdale, AZ
- Score (Out of 100): 72.53
- Home Price-to-Income Ratio: 13.4
- Home Price Change: 0.38%
- Inventory (per 10,000 residents): 62.4
- Homes Sold Over Price: 7.9%
- Days on Market: 39
- Gen Z Unemployment Rate: 3.5%
- Gen Z Homeownership Rate: 17.5%
Methodology
Point2, a division of Yardi Systems Inc., covers real estate trends and news. Point2 studies are based on internal data, public records, governmental sources, online research, and other reliable third-party agencies.
For this study, we considered the 100 largest markets in the United States by population based on 2021 Census Estimates. New York City was split into the five boroughs.
The study focuses on metrics sourced at the city level. Sources include Redfin, Zillow, Realtor, PropertyShark, and Local MLSs.
To determine The Gen Z Homebuying Havens, the report uses a combination of ranking scores and weighted averages of the following metrics:
- Home Price-to-Income Ratio
- Y-o-Y Median Sale Price Change (percentage difference between Nov. 2023 and Nov. 2022)
- Gen Z Homeownership Rate (owner-occupied units where the householder is under 25 years old out of total housing units occupied by under 25-year-olds)
- Unemployment Rate for those under 25 years old
- Inventory per 10,000 Residents
- Share of Homes Sold Above Listing Price
- Days on Market (DoM)
Data on Median Income, Unemployment Rate, and Homeownership Rate were sourced from the Census, American Community Survey – 2022.
Home Price-to-Income Ratio was calculated based on median home price and household income where the householder is under 25 years old.
For relevancy, the Unemployment Rate was considered only for the 20-24-year-old Census group as the majority of the other young group of 16–19-year-olds are still in school.
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