The oldest of Generation Z turn 27 this year. With age comes responsibility—and the urge to nest. Nearly half of Gen Z’s 68 million U.S. residents want to buy a home in the next five years per a Realtor.com survey, but what are the best cities for Gen Z homeowners?
Currently, more than half of Gen Z live with their families, and 18% own a home or are married to someone who does. Homeowners under age 25 are most concentrated in Tallahassee, Florida, where the median home price is $275,000, and Madison, Wisconsin, where the median home price is $395,000.
For the rest of Gen Z ready to become homeowners, MoneyGeek’s latest study points them toward the best cities for adults under 25. MoneyGeek analyzed 138 cities with 100,000 or more residents, looking at factors such as young adult income, homeownership rates, and population; student loan burdens; and access to food and entertainment.
Top Five Cities for Young Adults
And the winner is … Salt Lake City!
Ski City USA claimed the top spot due to two main factors: holding the lowest federal student loan debt per borrower ($11,062) and an unemployment rate of just 4.4%. Another plus is that the city’s young adult population shot up 41% from 2012 to 2022.
“Salt Lake City is the perfect city for Gen Z,” says Salt Lake City Real Estate Agent Joel Carson, President and Principal Broker at Utah Real Estate. “There’s always something to do in our very walkable city—from world-class skiing, hiking, and boating. There are phenomenal restaurants here for those who are foodies. Plus, there are five national parks just a few hours’ drive away.”
The top five cities where young adults under 25 can financially thrive, and their median home prices, are:
- Salt Lake City ($589,900)
- Abilene, Texas ($236,900)
- Des Moines ($234,900)
- Boise ($529,900)
- Las Cruces, New Mexico ($315,950)
Top Five Largest Cities for Young Adults
Among the U.S.’s 10 most populous cities, Phoenix was named the best for Gen Z, with an average federal student loan burden of $12,567 per borrower.
“Phoenix has a really hot job market,” says Stacy Miller, Real Estate Agent for The Miller Team at RE/MAX Fine Properties in Phoenix. “A lot of tech-based companies from other states and even overseas have moved their offices and warehouses here. I’m working with a Z-er now who’s buying his first home after moving from California for a job here.”
The rest of the top five big cities all reside in Texas, where the average federal student loan burden is $12,933 per borrower. The top five big U.S. cities where young adults under 25 can financially thrive, and their median home prices include:
- Phoenix ($475,000)
- Austin, Texas ($599,000)
- Dallas ($425,000)
- San Antonio, Texas ($285,994)
- Houston ($325,990)
Young Adults Are Migrating South and West
Over the past decade, the West has seen the biggest growth in its young adult population (4.4%), with the South next (3.4%). Meanwhile, the Northeast’s young adult population decreased by a whopping 9.6% in the past decade.
The high cost of living might have influenced this decline in the Northeast, according to MoneyGeek. The most significant declines were in New York City and Philadelphia, with each losing 15% of their young adult population.
“It is hard for Gen Z in New York City,” says Nikki Beauchamp, an Associate Broker with Sotheby’s International Realty in New York City. “From a rental perspective, people often need to consider getting roommates or renting out rooms to be able to afford it.”
Of her clients who are looking to buy, Beauchamp says Gen Z is getting creative. They’re thinking about buying multifamily units in the boroughs with friends, or purchasing property outside of the city together while still renting in the city.
So where are all those young people are fleeing to? Round Rock, Texas; and Alexandria, Virginia … those are the two metros that saw the most significant growth, climbing by 160% and 106%, respectively, between 2012 to 2022.
Click here for more on the hottest U.S. markets for Gen Z homebuyers.
