{"id":5194,"date":"2024-04-15T15:27:44","date_gmt":"2024-04-15T15:27:44","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/04\/15\/the-top-10-surprising-metros-where-generation-z-is-buying-up-homes\/"},"modified":"2024-04-15T15:27:44","modified_gmt":"2024-04-15T15:27:44","slug":"the-top-10-surprising-metros-where-generation-z-is-buying-up-homes","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2024\/04\/15\/the-top-10-surprising-metros-where-generation-z-is-buying-up-homes\/","title":{"rendered":"The Top 10 Surprising Metros Where Generation Z Is Buying Up Homes"},"content":{"rendered":"

<\/a><\/p>\n

Realtor.com; Canva<\/p>\n

<\/p>\n

Financially-savvy Generation Zers are successfully becoming homeowners\u2014and they\u2019re moving to more affordable metros to grab a bargain.<\/p>\n

Late last month,\u00a0Katie Hoehle<\/strong>, 24, and Jacob Aldrich<\/strong>, 23, closed on their first home after viewing more than a half-dozen houses. The engaged couple finally found what they were looking for in a newly renovated, two-bedroom, one-bedroom duplex with a one-car garage in Elk River, MN<\/a>. The home was priced at $209,000, and they got it for $212,000.<\/p>\n

They made homeownership happen after Aldrich sold a vehicle and Hoehle was promoted from an intern to a full-time position with a \u201cbig pay raise,\u201d she says. They also received down payment assistance from the state.<\/p>\n

\u201cI thought this was The One,\u201d says Hoehle, who works for a cybersecurity company. Her fianc\u00e9 is a machine operator at a surgical company. They plan to get married in May and purchased the home to be the start of their family. \u201cIt\u2019s got a nice little backyard. I\u2019m planning my little garden. \u2026 I love that we have a brand-new kitchen.\u201d<\/p>\n

Hoehle and Aldrich are among a new generation of homebuyers. About 6.2% of all folks purchasing primary homes were under 25 in 2022, according to the most recent Home Mortgage Disclosure Act data available.<\/p>\n

That\u2019s because members of Generation Z,<\/a> known for being thrifty and financially responsible, are contending with high home prices, rising mortgage rates, and a shortage of homes<\/a> on the market. They\u2019re also competing against investors and homeowners who can tap their equity to fund their next purchases.<\/p>\n

Yet, there are parts of the country where Gen Z members are successfully becoming homeowners, like Hoehle and Aldrich.<\/p>\n

Realtor.com\u00ae identified these metropolitan areas with the largest percentage of Gen Z buyers who closed on homes in 2022, using the most recent government data available. All of the metros on our list boasted home prices well below the national median list price of $424,900 in March, according to the most recent Realtor.com data. Most are at least $100,000 less than the national list price.<\/p>\n

Many are also near military bases. Buyers in these areas often use U.S. Department of Veterans Affairs loans, which don\u2019t require down payments and usually offer lower mortgage rates.<\/p>\n

Remote work schedules might also be helping them to become homeowners.<\/p>\n

\u201cGen Zers with college degrees are working everything from fully remote to hybrid schedules,\u201d\u00a0says\u00a0Mark Beal<\/strong>, a public relations professor at Rutgers University who wrote four books on Gen Z. \u201cThey have greater flexibility in where they can purchase homes. If they\u2019re 100% remote, they can live anywhere in this country.\u201d<\/p>\n

This generation also prioritizes finding ways to stretch their money.<\/p>\n

\u201cGen Z does a lot of research before making any significant purchase,\u201d says Beal. \u201cIn homebuying, they\u2019re looking to get great value.\u201d<\/p>\n

To come up with our findings, we looked at the most recent Home Mortgage Disclosure Act data available, which is from 2022. We then identified the metropolitan areas that had the highest percentage of buyers aged 25 and under.<\/p>\n

We did not include loans that were denied or withdrawn, home equity lines of credit, or loans for refinances, home equity, home renovations, vacation homes, and investment properties.<\/p>\n

Gen Z is buying homes in cheaper parts of the country<\/h2>\n

One of the biggest barriers to homeownership for Gen Z is the lack of affordability. Home prices have soared<\/a> over the past few years, and rising mortgage rates have made buying a home extremely difficult for many young buyers. Add in inflation, the resumption of student loan payments, higher rents, and competition from investors, and younger, first-time buyers have been at a disadvantage.<\/p>\n

However, they have been more successful in climbing onto the homeownership ladder in places with cheaper prices.<\/p>\n

Hoehle and her fianc\u00e9 were able to do it in Elk River, MN, about 45 minutes from St. Cloud, MN<\/a> (No. 10 on our list). However, their $212,000 home cost half of the national median price of $424,900.<\/p>\n

In Cumberland, MD<\/a>, No. 5 on our list, homes were listed at a median of just $158,000 in March. In St. Joseph, MO<\/a>, No. 7, the median price was $169,000. Lima, OH<\/a>, No. 3, and Watertown, NY<\/a>, No. 6, both boasted prices below $250,000, at $212,000 and $235,000 respectively. Hinesville, GA<\/a>, No. 8, had a median of $282,000; Waterloo, IA<\/a>, No. 4, had a median of $280,450; and Elkhart, IN,<\/a> No. 2, had a median of $295,000.<\/p>\n

\u201cElkhart\u2019s housing is a little more affordable,\u201d\u00a0says\u00a0Aaron Cowham<\/strong>, a real estate broker at Howard Hanna based near Elkhart. The area is known for its recreational vehicle (RV) manufacturing industry.<\/p>\n

In St. Cloud, the priciest place on our list with a median list price of $350,000 in March, buyers are often seeking three-bedroom, two-bathroom homes with two-car garages built in the 1950s and 1970s, says Janel Morgan<\/strong> of Re\/Max Results in St. Cloud.<\/p>\n

Many of her younger buyers are newly married and expecting their first child.<\/p>\n

\u201cFirst-time homebuyers are my favorite. They\u2019re so grateful when you give them the keys to their first home,\u201d\u00a0says Morgan.<\/p>\n

Many Gen Z hot spots are in military communities<\/h2>\n

Many of the metros on our list have strong military connections.<\/p>\n

Jacksonville, NC<\/a>, the nation\u2019s top Gen Z market, is home to Marine Corps Base Camp Lejeune. There are about 120,000 active-duty, dependent, retiree, and civilian employees on the base and surrounding community, according to the Marines site<\/a>.<\/p>\n

\u201cAll of them are using VA loans,\u201d says Jacksonville real estate broker Ronda Scott<\/strong>, of Re\/Max Elite Realty Group. That means her younger clients don\u2019t need to come up with down payments and often receive lower mortgage rates. \u201cSome of [them] get married very young, and there\u2019s not a lot of base housing or there\u2019s a long wait. So they go ahead and buy a house.\u201d<\/p>\n

They typically look for three-bedroom, two-bathroom homes spanning anywhere from 1,100 to 1,500 square feet on smaller lots priced below $275,000, she says. Typically, they own their homes for three or four years and then either sell them or rent them out.<\/p>\n

\u201cI\u2019ve sold new construction. I\u2019ve sold townhouses. I\u2019ve sold mobile homes. It varies,\u201d Scott says.<\/p>\n

Other military towns include Watertown, NY<\/a>, No. 6, which is right near Fort Drum, an Army military reservation with about 16,000 residents, according to 2020 U.S. Census Bureau data<\/a>. St. Joseph, MO<\/a>, No. 7, is where Rosecrans Air National Guard Base is located. There is also Hinesville, GA<\/a>, No. 8, where Fort Stewart is located. It\u2019s an Army base of about 9,000 residents, according to 2020 U.S. Census Bureau data<\/a>.<\/p>\n

Lima, OH<\/a>, No. 3, in Northwestern Ohio, is home to the Joint Systems Manufacturing Center, a government-owned and contractor-operated tank plant.<\/p>\n\n

1. Jacksonville, NC<\/a><\/h2>\n

This three-bedroom, two-bathroom house is on the market for $265,000.<\/p>\n

Realtor.com<\/p>\n

Percentage of Gen Z buyers: 17.91%<\/strong>
\nMedian home list price in March: $330,000<\/strong><\/p>\n

2. Elkhart, IN<\/a><\/h2>\n

Percentage of Gen Z buyers: 17.86%<\/strong>
\nMedian home list price: $295,000<\/strong><\/p>\n

3. Lima, OH<\/a><\/h2>\n

<\/a>Buyers can snag this brick three-bedroom, one-bathroom home for $169,900.<\/p>\n

Realtor.com<\/p>\n

Percentage of Gen Z buyers: 17.44%<\/strong>
\nMedian home list price: $212,500<\/strong><\/p>\n

4. Waterloo, IA<\/a><\/h2>\n

Percentage of Gen Z buyers: 17.14%<\/strong>
\nMedian home list price: $280,450<\/strong><\/p>\n

5. Cumberland, MD<\/a><\/h2>\n

<\/a>This three-bedroom Cape Cod in Cumberland, MD, has been recently renovated.<\/p>\n

Realtor.com<\/p>\n

Percentage of Gen Z buyers: 15.2%<\/strong>
\nMedian home list price: $158,000<\/strong><\/p>\n

6. Watertown, NY<\/a><\/h2>\n

Percentage of Gen Z buyers: 15.14%<\/strong>
\nMedian home list price: $235,000<\/strong><\/p>\n

7. St. Joseph, MO<\/a><\/h2>\n

<\/a>This four-bedroom, 3.5-bathroom home has been recently remodeled and is for sale for $119,900.<\/p>\n

Realtor.com<\/p>\n

Percentage of Gen Z buyers: 14.96%<\/strong>
\nMedian home list price: $169,900<\/strong><\/p>\n

8. Hinesville, GA<\/a><\/h2>\n

Percentage of Gen Z buyers: 14.86%<\/strong>
\nMedian home list price: $282,000<\/strong><\/p>\n

9. Dubuque, IA<\/a><\/h2>\n

<\/a>This three-bedroom, two-bathroom home is for sale for $251,730 in Dubuque, IA.<\/p>\n

Realtor.com<\/p>\n

Percentage of Gen Z buyers: 14.78%<\/strong>
\nMedian home list price: $308,750<\/strong><\/p>\n

10. St. Cloud, MN<\/a><\/h2>\n

Percentage of Gen Z buyers: 14.62%<\/strong>
\nMedian home list price: $350,000<\/strong><\/p>\n

The post The Top 10 Surprising Metros Where Generation Z Is Buying Up Homes<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Realtor.com; Canva Financially-savvy Generation Zers are successfully becoming homeowners\u2014and they\u2019re moving to more affordable metros to grab a bargain. Late last month,\u00a0Katie Hoehle, 24, and Jacob Aldrich, 23, closed on their first home after viewing more than a half-dozen houses. The engaged couple finally found what they were looking for in a newly renovated, two-bedroom,…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":5195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/5194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=5194"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/5194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/5195"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=5194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=5194"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=5194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}