Which Major Cities Offer Gen Z the Best Chance of Homeownership?
For Gen Z, the Midwest and South offer the best chances of homeownership, according to a study conducted by Point2 that analyzed the country’s 100 largest cities.
There are an estimated 69.58 million people in this cohort, making Gen Z about 21% of the U.S. population. Born approximately between 1997 and 2012, Gen Z is the new kid on the block when it comes to homebuying. Already faced with various economic challenges throughout their lives, many Gen Zers are now struggling to buy homes, especially in major cities across the country.
Point2’s study has found which major U.S. cities offer Gen Z the best chance of homeownership based on seven metrics: home price-to-income ratio, median sale price difference from 2022 to 2023, inventory, share of homes sold above listing price, days on the market, homeownership rate and unemployment rate.
Philadelphia ranks No. 24 with an overall score of 67.18, a home price-to-income ratio of 6.8, a home price change of -4.00%, an inventory of 38.1 per 10,000 residents, a home sold over price of rate of 22.0%, an average 46 days on the market, a Gen Z unemployment rate of 11.9% and a Gen Z homeownership rate of 9.3%. Gen Z homebuyers may have slightly less luck in Pittsburgh, which ranks No. 89 in comparison.
The top 10 best cities for Gen Z homeownership were:
- Fort Wayne, Indiana (score of 84.20 out of 100)
- Corpus Christi, Texas (80.55)
- Detroit, Michigan (80.53)
- Laredo, Texas (78.70)
- Memphis, Tennessee (77.00)
- Lincoln, Nebraska (75.18)
- Durham, North Carolina (73.48)
- Fort Worth, Texas (73.13)
- Aurora, Colorado (72.78)
- Scottsdale, Arizona (72.53)
On the other hand, many of the cities where Gen Z will find it most difficult to become homeowners are located on the coasts. California alone takes up seven cities out of the top 10 worst cities for Gen Z homebuyers, with Fremont (11.63) taking the lead, followed by San Diego (20.95). The three non-California cities are No. 3 Lexington, Kentucky, No. 9 Richmond, Virginia and No. 10, Newark, New Jersey.
Topics
Share this post
Member Discussion
Recent Articles
-
Unaffordable Market Shrinks First-Time Buyers; Agents Remain Key
- November 13, 2024
- 4 min. read
“We have an all-time high of all cash buyers and an all-time low of first-time homebuyers,” noted NAR Deputy Chief Economist and Vice President of Research Dr. Jessica Lautz.
-
Recent Homebuyers Saved for Five Years on Average
- November 12, 2024
- 2 min. read
On average, recent buyers who were surveyed put down an average of 17.38% on their new home. However, 49% put down 10% or less of the purchase price.
-
Scranton Has 5th Lowest Cost of Living
- November 11, 2024
- 1 min. read
“The Scranton area is a great place to live because the cost of living is significantly below the national average, particularly in housing, making it super affordable to buy a home here,” said GSBR President Dan Taylor.
Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.