Gen Zers look to Ohio and other Midwestern states for their first homes

Gen Zers, the latest crowd to enter the housing market, are heading to affordable mid-size cities, many in the Midwest, for their first homes.

According to a new study of the online mortgage platform LendingTreefour of the top 10 cities for Gen Z homebuyers are in the Midwest, led by Cincinnati at No. 4, Indianapolis at No. 5 and Minneapolis at No. 7.

The Columbus area, where the housing market is breaking recordslanded at #14.

Generation Z, whose members range in age from 10 to 25, is relatively new to the housing market but accounted for 10% of mortgages offered by LendingTree in the country’s 50 largest metro areas last year, the study found. .

In some metropolitan areas, however, they made up a much larger share of the market.

Gen Z buyers accounted for 16.6% of mortgages in Salt Lake City, Utah, the metro area with the greatest impact on Gen Z.

After Salt Lake come Louisville (15.7% of mortgage loans), Oklahoma City (15.3%), Cincinnati (14.3%) and Indianapolis (14.1%). In Columbus, Gen Z buyers accounted for 11.6% of mortgages and in Cleveland, they accounted for 9.9%.

Smaller, more affordable towns in the center of the country dominated the top of the Gen Z list, while expensive coastal towns were the least popular, likely due to cost. In San Francisco, Gen Z shoppers made up 3.6% of the market; in New York, 4.1%; and in San Jose, California, 4.5%.

The report notes that rising home prices and rising interest rates could wipe some potential Gen Z buyers out of the market altogether this year. In the Columbus area, interest rates and house price increases have increased the monthly payment for a typical home by almost $500 from a year ago.

“While buying a home may be a good choice for some Gen-Zers, that doesn’t mean everyone in the generation should feel pressured into immediate homeownership,” said the senior economic analyst at LendingTree, Jacob Channel, who also wrote the report. .

“It also doesn’t mean that those who can’t necessarily afford a home right now are somehow behind their peers or making bad financial decisions. Buying a home is a very personal choice. and when it is right can vary greatly from person to person.”

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@JimWeiker

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