Millennials and Gen Z account for 41% of today’s homebuyers, and last year, made up the largest share of veteran and military home buyers. Veterans United Home Loans, one of the nation’s largest VA lenders, examined the housing markets that were determined best for these young and/or first-time buyers in its “Best Cities for Millennial and Gen Z Veteran Homebuyers.” The list is comprised of the top 10 communities that offer things that these buyers stated they value most: greater housing affordability, job opportunities, and quality of life.
According to Veterans United Home Loans, the top 10 markets include:
- Tampa-St. Petersburg-Clearwater, Florida
- San Antonio-New Braunfels, Texas
- Cleveland-Elyria, Ohio
- Rochester, New York
- Buffalo-Cheektowaga, New York
- Louis, Missouri
- Detroit-Warren-Dearborn, Michigan
- Birmingham-Hoover, Alabama
- Providence-Warwick, Rhode Island-Massachusetts
- Houston-The Woodlands-Sugar Land, Texas
“As home prices continue to rise and with interest rates double what they were just two years ago, first-time buyers are in a challenging position. Thanks to the VA loan, Millennial and Gen Z veterans and service members have the benefit of reduced upfront costs and no PMI, making homebuying more affordable,” said Chris Birk, VP of Mortgage Insight at Veterans United. “The top 10 markets provide what Millennials and Gen Z are looking for in terms of quality of life, some of the most affordable housing prices in the country, and compelling job opportunities for life after the military.”
Each community was judged by the following factors, taken from Veteran United’s quarterly Veteran Homebuying Report:
- Metropolitan areas of one million or more: Both Millennials and Gen Z veterans prefer to live in big cities.
- Located near a military base.
- Located in a state that does not tax military retirement pay.
- A lower-than-average cost of living.
- A lower-than-average median home price: Seven of the top 10 cities had a median home price lower than the national figure of $373,667. Cleveland (which ranked at third on the list) had the lowest on the list at $272,450, while Providence (ranked ninth) had the highest at $599,450—still affordable compared to other large East Coast cities.
- A large Millennial and Gen Z population: Some of the cities on the list—such as San Antonio at number two, Rochester at four, and Birmingham at number eight—are becoming hubs for younger populations. Together, the two age groups make up almost half of San Antonio’s population, and account for 42% each of Rochester’s and Birmingham’s population.
- Strong employment opportunities.
- A large number of entertainment options: Tampa (number one on the list), Cleveland (third on the list), Rochester (ranked fourth), Buffalo (ranked fifth), and Detroit (named number seven on the list) all have an abundance of cultural events, outdoor activities, and vibrant nightlife and restaurant scenes, with the latter two offering easy access to Canada.
- Exceptional healthcare facilities: Third-ranked Cleveland has the famous Cleveland Clinic, while St. Louis (at number six) has Barnes-Jewish Hospital, one of the top medical facilities in the nation.
- Large numbers of veterans already in the market: This means the possibility of obtaining an assumable mortgage, where the buyer takes over the seller’s mortgage (usually at a significantly lower interest rate.
Veterans United Home Loans is a full-service national direct lender that has financed more than $17 billion in loans in 2023. Their mission is to help veterans and service members take advantage of the home loan benefits earned by their service.
Click here to read more on Veterans United’s list of the best cities for millennial and Gen Z veteran homebuyers.
