With an estimated 19.9% of all mortgage requests nationwide, Gen Z is progressively making a name for itself in the housing market, according to a new LendingTree study. Though they now account for a sizable portion of mortgage activity worldwide, younger buyers are more prevalent in some locations than others. According to the research, their impact is far less noticeable in expensive coastal cities and more noticeable in more reasonably priced Midwestern metro areas.
As mentioned, nearly one in five (19.9%) mortgage purchase requests countrywide are made by Gen Zers, or those between the ages of 18 and 28 in 2025, which is the focus of this investigation. With an average down payment of $44,966 and an average loan amount of $274,794, these Gen Zers had an average credit score of 674.
They are particularly prevalent in the Midwest among the 50 biggest U.S. metropolitan areas, with Gen Zers making up 26.4% of mortgage purchase requests in Minneapolis—which is ranked the best. Indianapolis (24.6%) and Birmingham, AL (25.7%) followed.
Top 10 Most Popular Metros for Gen Z Homebuyers (2025):
| Rank | Metro | Share of mortgage purchase requests | Avg. credit score | Avg. down payment | Avg. requested loan amount |
|---|---|---|---|---|---|
| 1 | Minneapolis | 26.4% | 690 | $46,849 | $288,483 |
| 2 | Birmingham, AL | 25.7% | 667 | $37,932 | $223,750 |
| 3 | Indianapolis | 24.6% | 679 | $37,371 | $237,966 |
| 4 | Kansas City, MO | 24.5% | 677 | $38,459 | $247,056 |
| 4 | Milwaukee | 24.5% | 684 | $43,777 | $257,503 |
| 6 | Cincinnati | 24.1% | 679 | $35,312 | $222,219 |
| 7 | Nashville, TN | 24.0% | 685 | $55,212 | $331,382 |
| 8 | Buffalo, NY | 23.9% | 678 | $35,143 | $209,128 |
| 8 | Knoxville, TN | 23.9% | 675 | $40,276 | $265,596 |
| 10 | Pittsburgh | 23.6% | 680 | $34,117 | $196,939 |
Affordability undoubtedly contributes to these metros’ appeal, according to Matt Schulz, Senior Consumer Financial Analyst at LendingTree.
“These three metros are considered affordable, though they’re quite different in terms of income levels,” Schulz said. “Minneapolis has the highest incomes of the three, with Indianapolis next, and then Birmingham. Minneapolis also has the advantage of being in a state whose residents typically have high credit scores.”
Further, in Minneapolis, Gen Z homebuyers have an average credit score of 690, while in Birmingham and Indianapolis, it is 667 and 679, respectively.
“Those higher scores mean they’re more likely to be able to get a mortgage if they want one,” Schulz said.
Coast vs. Costs: Regional Trends Differ Among Gen Z
On the other hand, Gen Zers are less interested in expensive coastal markets. The lowest percentages of Gen Z consumers are seen in Miami (12.4%), San Francisco (12.8%), and Las Vegas (12.8%). This might be because homebuyers in these areas have financial obstacles to overcome. At $140,005 and $64,393, respectively, San Francisco and Miami are two of the top ten largest average down payments among Gen Zers. San Francisco also has the highest average credit score (699) and the greatest average loan amount ($621,577).
However, according to Schulz, the number of Gen Zers in certain places may fluctuate over time.
“Right now, many Gen Zers may not yet have the credit scores, incomes or savings needed to afford homes in these markets,” Schulz said. “But as they move into their prime earning years over the next couple of decades, more opportunities will open up.”
Those who are keen to enter these areas might need to adopt a more adaptable strategy in the interim.
“They could explore mortgages that require low or even no down payment, if they qualify,” Schulz said. “They might look in more affordable areas on the outskirts of a metro, consider smaller homes that better fit their budget or use high-yield savings accounts to build their down payment.”
However, although none of these tactics make purchasing in pricey marketplaces simple, Gen Z consumers who are prepared to adjust can increase their chances of making a purchase.
Although Gen Z’s propensity to purchase a home varies greatly by metro, the generation is typically gaining traction in the housing market. Between 2024 and 2025, the overall percentage of Gen Z mortgage requests rose from 18.1% to 19.9%, an estimated 9.9% rise. The percentage of mortgage requests from Gen Z purchasers increased most in Virginia Beach, VA (37.1%), followed by San Francisco (33.9%) and Birmingham, AL (30.9%).
Despite lower overall shares, Gen Z homebuying is nevertheless growing more quickly in some expensive coastal urban areas. For instance, the percentage of Gen Z consumers in San Francisco increased by 3.2 percentage points, from 9.5% to 12.8%. Similar trends were observed in New York, where its proportion increased by 2.5 points to 15.6%. Some of that growth, according to Schulz, is a reflection of the demographics of the housing market.
“Many older Americans are stuck on the sidelines, unwilling to trade their old, low-rate mortgage for one with today’s higher rates,” he said. “That likely means more first-time buyers in the market, and many of those are Gen Zers.”
On the other hand, the percentage of Gen Z mortgage requests fell in six metro areas, with Miami leading the way with a staggering 10.5% fall. Orlando, FL (-3.1%) and Portland, OR (-3.7%) were far behind.
Top 10 Metros Where Gen Z Homebuying is Growing Fastest:
| Rank | Metro | Share of mortgage purchase requests, 2024 | Share of mortgage purchase requests, 2025 | % point change | % change |
|---|---|---|---|---|---|
| 1 | Virginia Beach, VA | 15.4% | 21.1% | 5.7 | 37.1% |
| 2 | San Francisco | 9.5% | 12.8% | 3.2 | 33.9% |
| 3 | Birmingham, AL | 19.6% | 25.7% | 6.1 | 30.9% |
| 4 | Myrtle Beach, SC | 10.7% | 13.3% | 2.6 | 24.5% |
| 5 | Jacksonville, FL | 16.1% | 19.7% | 3.6 | 22.3% |
| 6 | Nashville, TN | 19.6% | 24.0% | 4.3 | 22.1% |
| 7 | Richmond, VA | 15.2% | 18.2% | 3.0 | 19.9% |
| 8 | Knoxville, TN | 20.1% | 23.9% | 3.9 | 19.2% |
| 9 | New York | 13.1% | 15.6% | 2.5 | 19.1% |
| 10 | Sacramento, CA | 13.2% | 15.4% | 2.1 | 16.2% |
Millennials Remain in Control of the U.S Housing Market
Millennials (ages 29 to 44 in 2025) continue to dominate the housing market, accounting for 40.5% of mortgage purchase requests in 2025, even if Gen Z is beginning to emerge. Baby boomers (ages 61 to 79) come in at 12.7%, Gen Zers at 19.9%, and Gen Xers (ages 45 to 60) at 26.3%.
Additionally, compared to millennials, Gen Z purchasers typically make lower financial commitments when they enter the market. Their typical loan amounts ($274,794) and down payments ($44,966) are significantly less than those of millennials ($72,412 and $356,655, respectively). According to Schulz, Gen Zers who wish to purchase have fewer options due to lower down payments and smaller loan amounts.
“That can be frustrating for young people who want to buy a home, but it shouldn’t be surprising that Gen Zers are making smaller down payments and taking out smaller mortgages than millennials,” Schulz said. “Millennials tend to earn more and have higher credit scores, making them far more likely to successfully apply for a mortgage and to get better terms when they do. Gen Zers will certainly catch up as the years pass, but for right now, millennials are far, far better situated for homeownership than Gen Zers are.”
Especially in the current housing market, purchasing your first home may seem unattainable, but planning ahead and being adaptable can help. Even while Gen Z buyers frequently encounter obstacles like minimal funds and a short credit history, there are still things they can do to increase their chances.
To read the full report, click here.
