By rssfeeds-admin The LendingTree study, which analyzed mortgage requests among 18–27-year-olds who used its platform in 2024, found that Salt Lake City is the second most popular spot for Gen Z homebuyers. LendingTree reported that 24.79% of mortgage applicants in Salt Lake were between 18 and 27 years old in 2024.
Top 10 metro areas popular with Gen Z home-seekers
- Grand Rapids, Michigan: 31.45%
- Salt Lake City, Utah: 24.79%
- Milwaukee, Wisconsin: 24.33%
- Minneapolis, Minnesota: 23.93%
- Cincinnati, Ohio: 23.80%
- Indianapolis, Indiana: 23.30%
- Buffalo, New York: 23.18%
- Louisville, Kentucky: 22.84%
- Kansas City, Missouri: 22.63%
- Columbus, Ohio: 22.39%
“Salt Lake City… has seen its young population explode in size in recent years, thanks in part to a thriving tech scene and booming economy,” LendingTree finance analyst Matt Schulz said. “That economic growth has helped many young people in the area flourish economically to where they can afford to buy a house and put down roots in the area.”
The study found that members of Gen Z are filing for a larger share of applications in mostly Midwest metro areas — with Grand Rapids, Michigan, topping the list: Gen Z applicants using LendingTree accounted for just over 31% of the mortgage requests in the West Michigan metro.
As Grand Rapids and Salt Lake took the top two spots, Milwaukee boasted the next-largest share of Gen Z applicants, with 24.33%. Metro areas in Minnesota, Ohio, Indiana, and Missouri were also among those with relatively large shares of young mortgage applicants.
The reason for a larger concentration of younger homebuyers in the Midwest, in particular, is simple, according to Schulz: They’re more affordable areas with a “relatively average cost-of-living.”
Schulz acknowledged that Salt Lake wasn’t as affordable as the other top metro areas, but said economic growth is helping the younger population to flourish.
WalletHub recently echoed that sentiment, ranking Utah as the state with the tenth-highest cost of housing. Utahns reportedly spend more than 30% of their median income on mortgage and utility payments.
A recent Redfin analysis of affordable metro areas for homebuyers also found that median home prices in several Midwest cities — specifically Detroit, Cleveland, and Dayton — were among the lowest in the country.
On the other end of the spectrum, LendingTree observed the lowest share of Gen Z mortgage applicants in San Francisco (where Gen Z applicants accounted for only 9.68% of requests) and several other California metros, among cities in Nevada, New York, and Florida.
Metro areas with the smallest share of Gen Z home-seekers
- San Francisco, California: 9.68%
- San Jose, California: 11.31%
- Las Vegas, Nevada: 12.07%
- Los Angeles, California: 13.17%
- New York, New York: 13.54%
- Sacramento, California: 13.73%
- Riverside, California: 13.98%
- Miami, Florida: 14.20%
- San Diego, California: 14.80%
- Orlando, Florida: 15.06%
A full list of 50 metro areas ranked according to the share of mortgage requests from Gen Z applicants can be found at LendingTree.com.
Other recent findings
The findings appear to line up with recent upward trends in real estate prices, too. A recent Zillow study found that California has the largest share of cities with “starter” homes priced at $1 million or above, followed by New York, New Jersey, and Florida.
Recent data from Realtor.com also found that today’s homeowners would need to earn $47,000 more than they did six years ago just to afford a home at the median U.S. listing price. In several metro areas, including San Francisco, Los Angeles, New York, and Boston, the annual income needed to afford a median-priced home tops $200,000. In San Jose, it’s more than $370,000.
“The cost of buying a house is just so high that many young people see it as a pipe dream,” Schulz said of LendingTree’s findings.
It’s not all bad news, though. Home prices appear to be rising more slowly than during the pandemic, and buyers may now have a wider selection of properties to look at. As properties take longer to sell, more sellers might also be reducing their asking price. Some 18% of listings had their price reduced last month, according to Realtor.com.
“Sellers are becoming more flexible on pricing, underscored by the price reductions we’re seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance,” said Danielle Hale, chief economist at Realtor.com. “This could create opportunities for buyers who are prepared.”
The Associated Press contributed to this report.
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