For Americans, owning a home has long been a significant accomplishment and, for some, the “pinnacle of success.” Actually, a lot of Gen Zers today have or are delaying marriage and having kids in order to purchase a home, according to a new LendingTree study.
However, it’s not always that easy. Homeownership remains a long, winding, and financially stressful path for some buyers seeking the American Dream. In the 50 largest U.S. metro areas, just 3.1% of Americans under 30 have a mortgage, according to a LendingTree research of anonymised credit reports of platform users. However, depending on the metro, that percentage can range from 9.4% to 0.8%. Here is a look at homeowners under 30.
Younger prospective buyers search for homes that are only 25% of the typical price that older buyers consider. On the LendingTree platform, younger buyers searched for mortgages that would cost an average of $92,332 in 2024 to buy homes in the 50 largest metro areas. Compared to older buyers’ average of $367,681, that is 74.9% less.
“Rising home prices and consistently high interest rates, combined with stubborn overall inflation, have made homeownership little more than a pipe dream for many Americans,” said Matt Schulz, Chief Credit Analyst at LendingTree. “That’s especially true for 20-somethings, who may also be struggling with relatively new student loan debt. It’s nothing short of a shame.”
Top 10 Metros with the Largest Share of Owners Under-30s w/ Mortgages
| Rank | Metro | Percentage % |
|---|---|---|
| 1 | Nashville, TN | 9.4% |
| 2 | Indianapolis | 8.4% |
| 3 | Pittsburgh | 7.0% |
| 4 | Cincinnati | 6.5% |
| 5 | Louisville, KY | 5.8% |
| 6 | Oklahoma City | 5.7% |
| 7 | San Antonio | 5.3% |
| 8 | Hartford, CT | 5.0% |
| 9 | Virginia Beach, VA | 4.9% |
| 10 | Buffalo, NY | 4.7% |
Note: Source: LendingTree analysis of over 32,000 anonymized fourth-quarter 2024 credit reports of adults under 30 in the 50 largest U.S. metros.
Top 10 Metros with the Smallest Share of Under-30s w/ Mortgages
| Rank | Metro | Percentage % |
|---|---|---|
| 50 | San Jose, CA | 0.8% |
| 49 | New York | 1.2% |
| 48 | Los Angeles | 1.3% |
| 47 | Boston | 1.4% |
| 46 | Sacramento, CA | 1.6% |
| 45 | San Diego | 1.7% |
| 44 | San Francisco | 2.0% |
| 43 | Richmond, VA | 2.1% |
| 42 | Portland, OR | 2.2% |
| 41 | Atlanta | 2.3% |
In the 50 major U.S. metro areas, only 3.1% of persons under 30 hold a mortgage, although this varies widely. In Nashville, TN, 9.4% of people under 30 have a mortgage, compared to 8.4% in Indianapolis and 7.0% in Pittsburgh. In contrast, only 0.8% do so in San Jose, CA; in New York, that number is 1.2%; and in Los Angeles, it is 1.3%. In these bigger, more costly metro areas, homeownership rates are often lower, which could account for some or all of this discrepancy.
Top 10 Metros w/ the Highest Rate of Mortgage Holders Under 30
| Rank | Metro | Percentage % |
|---|---|---|
| 1 | Indianapolis | 10.2% |
| 2 | Salt Lake City | 9.4% |
| 3 | Cincinnati | 8.9% |
| 3 | Oklahoma City | 8.9% |
| 5 | Raleigh, NC | 8.2% |
| 6 | Virginia Beach, VA | 8.0% |
| 7 | Pittsburgh | 7.3% |
| 8 | San Antonio | 7.1% |
| 9 | Denver | 7.0% |
| 10 | Louisville, KY | 6.4% |
Despite making up 20.3% of the adult population in the 50 largest metro areas, those under 30 only account for 4.7% of mortgage holders in the same metro areas listed the the first chart. The greatest rates are found in Indianapolis (10.2% of mortgage holders are under 30), Salt Lake City (9.4%), Cincinnati (8.9%), and Oklahoma City (8.9%). New Orleans (2.2%), Boston (2.2%), San Jose (2.3%), and New York (2.3%) have the lowest rates, respectively.
Top 10 Metros w/ the Largest Value Difference in Homes Sought by Under-30s & Older Buyers
| Rank | Metro | Value, under 30 | Value, 30 and older | $ difference | % difference |
|---|---|---|---|---|---|
| 1 | Providence, RI | $92,768 | $775,543 | $682,775 | 88.0% |
| 2 | Charlotte, NC | $115,565 | $831,067 | $715,502 | 86.1% |
| 3 | San Francisco | $133,602 | $842,458 | $708,856 | 84.1% |
| 4 | Las Vegas | $70,228 | $359,363 | $289,135 | 80.5% |
| 5 | San Jose, CA | $178,995 | $872,986 | $693,991 | 79.5% |
| 6 | Richmond, VA | $70,768 | $333,889 | $263,121 | 78.8% |
| 7 | Miami | $88,317 | $411,783 | $323,466 | 78.6% |
| 8 | Washington, DC | $106,218 | $490,894 | $384,676 | 78.4% |
| 9 | Sacramento, CA | $94,076 | $429,416 | $335,340 | 78.1% |
| 10 | Riverside, CA | $89,427 | $403,185 | $313,758 | 77.8% |
Younger purchasers sought mortgage homes that were 88.0% less expensive than those of older buyers in Providence, RI, where the trend was most noticeable. Charlotte, NC, had homes that were 86.1% cheaper, and San Francisco had homes that were 84.1% cheaper. Buffalo, NY (58.0% less expensive), Milwaukee (58.5% less expensive), and Salt Lake City (60.9% less expensive) are at the other extreme.
Providence, RI:
- Average home value among prospective buyers under 30: $92,768
- Average home value among prospective buyers 30 and older: $775,543
- $ difference: $682,775
- % difference: 88.0%
The total amount of mortgage debt owed by those aged 18 to 29 is $527 billion, or 4.2% of all mortgage debt. Mortgages make up 44.6% of this age group’s total debt, which is significantly less than that of other age groups. People between the ages of 30 and 39, for instance, have $2.7 trillion in outstanding mortgage debt, or 21.5%, which makes up 68.6% of their total debt load.
Mortgage Debt by Age Group:
Age 18 to 29
- Outstanding mortgage debt: $527 billion
- % of total mortgage debt: 4.2%
- % of age group’s total debt: 44.6%
Age 30 to 39
- Outstanding mortgage debt: $2.71 trillion
- % of total mortgage debt: 21.5%
- % of age group’s total debt: 68.6%
Age 40 to 49
- Outstanding mortgage debt: $3.41 trillion
- % of total mortgage debt: 27.1%
- % of age group’s total debt: 73.3%
Age 50 to 59
- Outstanding mortgage debt: $2.84 trillion
- % of total mortgage debt: 22.6%
- % of age group’s total debt: 72.6%
Age 60 to 69
- Outstanding mortgage debt: $1.91 trillion
- % of total mortgage debt: 15.2%
- % of age group’s total debt: 73.0%
Age 70+
- Outstanding mortgage debt: $1.18 trillion
- % of total mortgage debt: 9.4%
- % of age group’s total debt: 73.8%
“Sure, big-metro dwellers may have higher incomes than their rural or suburban counterparts, but the cost of living and cost of housing can be so astronomically high that it eats up all that extra income—and then some,” Schulz said. “Also, if you’re able to find a home you can afford to buy, it may be so far from your workplace that you spend large amounts of money commuting. It all adds up to a challenging situation leading many young people to forgo homeownership altogether.”
To read the full report, including more data, charts, and methodology, click here.
