Here’s where Gen Zers are buying homes – and it’s not in LA or NYC

2025 U.S. real estate predictions

Zillow predicted a more active market with additional inventory for 2025, giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available. Alana Mann, President of The Statesman Group of Companies, joined LiveNOW from FOX to discuss.

Gen Z adults are the most recent generation to enter the homebuying market. But where are they buying?

LendingTree analyzed mortgage purchase requests from adult Gen Z users of the LendingTree platform across the nation’s 50 largest metros from Jan. 1 through Dec. 31, 2024. 

Grand Rapids had largest share of mortgage requests from Gen Zers

By the numbers:

According to the data, Grand Rapids, Michigan had the largest share of mortgage requests from Gen Zers. 

FILE: Gen Z female moves into new home. (Credit: Getty)

The Michigan metro led by a solid margin, with Gen Zers comprising nearly a third (31.45%) of mortgage requests. Salt Lake City (24.79%) and Milwaukee (24.33%) followed. 

What they're saying:

"Grand Rapids and Milwaukee are relatively average cost-of-living areas where homeownership may not be out of the question for younger people," Matthew Schulz, a LendingTree chief consumer finance analyst, said. "Salt Lake City, on the other hand, isn’t as affordable, but it has seen its young population explode in size in recent years, thanks in part to a thriving tech scene and booming economy. That economic growth has helped many young people in the area flourish economically to where they can afford to buy a house and put down roots in the area."

Western cities had smallest rate of mortgage requests

By the numbers:

Meanwhile, expensive Western metros had the smallest rate of mortgage requests from Gen Zers. San Francisco (9.68%) was the only big metro where Gen Zers accounted for less than 10% of requests. San Jose, California (11.31%), and Las Vegas (12.07%) followed.

What they're saying:

"Price would likely be the biggest factor in San Francisco and San Jose," Schulz continued. "The cost of buying a house is just so high that many young people see it as a pipe dream." 

He added: Las Vegas has a reputation for being a more transient city, so people may be a little less likely to look to put down long-term roots there. While that may not be the case for the area’s many retirees, it might well be true among younger people who move there."

Overall, six of the 10 least popular metros for potential Gen Z homebuyers were in California. Despite this, one California metro finished in the top 20: Fresno, California, where 19.24% of mortgage requests belonged to Gen Zers.

Gen Zers in 2 California metros have highest credit scores

Dig deeper:

Despite this, credit scores can also be an important part of purchasing a home, and potential Gen Z homebuyers had average credit scores above 700 in just two metros: San Francisco and San Jose.

Across all metros analyzed, the average credit score was 681.

RELATED: Gen Zers credit card balances grow the fastest: TransUnion

What they're saying:

"In general, little in life is more expensive than crummy credit. Poor credit scores keep people from being able to borrow, and if they are able to borrow, they wind up paying far more than others in interest and fees. It can cost you tens of thousands of dollars, so it’s crucial to try to firm up your credit before shopping for a home," Schulz added.

Last year, an analysis from the housing platform Zillow found that Texas "far and away" gained the most Gen Z movers year-over-year.

"Texas offers job opportunities and relative affordability. Many parts of Texas have been successful [in] building a lot of new housing to better accommodate its new residents," Zillow’s principal population scientist Edward Berchick told FOX News Digital.

Texas had a net gain of more than 76,000 new Gen Z residents. To note, that particular study did not signify whether the Gen Zers rented or purchased a home when they moved there.