Map Shows Where Gen Z Is Carving Out Its Place in the Housing Market

Senior Housing Reporter

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Gen Z is carving out its place in the U.S. housing market, despite longstanding affordability issues, a sluggish jobs market, and growing economic uncertainty—at least in those parts of the country where home prices make it possible.

According to a new report by LendingTree, Gen Z, the generation born between 1997 and 2012, accounted for 19.9 percent of mortgage requests nationwide between January 1, 2024, and December 31, 2025. Not only is this a remarkable share, but Gen Z homebuying has increased by 9.9 percent between 2024 and 2025, LendingTree found.

Where Are Gen Zers Applying for Mortgages?

While Gen Zers across the country are successfully stepping onto the property ladder, they still face significant hurdles

According to the latest data from the National Association of Realtors (NAR), the median age of first-time homebuyers reached 40 last year, an all-time high, while the first-time homebuyer share fell to a historic low of 21 percent.

These historic figures are mainly due to the fact that home prices have skyrocketed since the COVID-19 pandemic, when the rise of remote work and low mortgage rates triggered a homebuying frenzy across the country which clashed against a chronic lack of inventory nationwide.

As of March 2026, the latest available data from Redfin, the median sale price of a typical U.S. home was $436,523, up from $431,544 a year earlier and $295,100 in March 2019. 

Borrowing costs have also soared since 2022 when the Federal Reserve launched its rate-hiking campaign in an attempt to keep down inflation. As of May 14, the average 30-year fixed-rate mortgage was 6.36 percent, according to Freddie Mac, up from the lows of 2-3 percent reported during the pandemic.

But there are some bright spots of affordability in the housing market where prices have remained relatively affordable through the pandemic, and where the cost-of-living, together with good job opportunities and solid wages, allow young people to become homeowners.

The highest share of Gen Z applying for mortgages between January 1, 2024, and December 31, 2025, was concentrated in the Midwest, according to LendingTree, a region that has come to represent a reliable beacon of affordability in the country.

Minneapolis led the nation with 26.4 percent of mortgage applications from Gen Zers, followed by Birmingham, Alabama, (25.7 percent), and Indianapolis (24.6 percent).

“These three metros are considered affordable, though they’re quite different in terms of income levels,” Matt Schulz, LendingTree chief consumer finance analyst, said in a statement. “Minneapolis also has the advantage of being in a state whose residents typically have high credit scores.” 

Gen Zers across the country applying for mortgages had an average credit score of 674, with an average down payment of $44,966 and an average requested loan amount of $274,794, LendingTree reported.

In Minnesota, Gen Zers had an average credit score of 690, with an average down payment of $46,849 and an average requested loan amount of $288,483.

Where Are Gen Zers Not Applying for Mortgages?

The metros with the lowest share of Gen Zers buying homes are concentrated in expensive coastal markets on the West and East coasts. Miami had the lowest share of Gen Zers requesting mortgages, at 12.4 percent, followed by San Francisco (12.8 percent) and Las Vegas (12.8 percent).

That is likely because of how expensive buying a home is in these cities, carrying high down payment requirements. San Francisco and Miami have among the top 10 highest average down payments for Gen Zers, at $140,005 and $64,393, respectively. 

San Francisco also has the largest average requested loan amount ($621,577) and the highest average credit score, at 699. 

Over time, Gen Zers might mature better credit scores in these areas, Schulz said.

“Right now, many Gen Zers may not yet have the credit scores, incomes or savings needed to afford homes in these markets. But as they move into their prime earning years over the next couple of decades, more opportunities will open up,” he added.

Surprisingly, however, San Francisco reported the second-biggest increase in the country in terms of Gen Z’s homebuying activity, for a 33.9 percent jump between 2024 and 2025. Virginia Beach, Virginia, saw the biggest overall increase, up by 37.1 percent.

“Many older Americans are stuck on the sidelines, unwilling to trade their old, low-rate mortgage for one with today’s higher rates,” Schulz said. “That likely means more first-time buyers in the market, and many of those are Gen Zers.”

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