Realtor November 15, 2024
Buyer
There are 68 million Gen Zers in America, with the oldest ones turning 27 this year—and nearly half of them want to buy a home in the next five years.
More than half of this generation still lives with family, and 18% own a home or are married to someone who does, according to a Realtor.com® survey.
The highest percentages of homeowners under 25 are in Tallahassee, FL, where the median home price is $275,000, and Madison, WI, where the median home price is $395,500.
For other Gen Zers who are ready to fly the coop, a new study by Money Geek recently identified the best cities for young adults under 25.
To find the top cities, the study analyzed factors like young adult income, homeownership rates, and population; student loan burdens; and access to food and entertainment.
Money Geek analyzed 138 cities with 100,000 or more residents. Of all the cities that were evaluated, Salt Lake City was named the top spot where young adults under 25 can financially thrive.
This is primarily due to two factors: The city holds the lowest federal student loan debt per borrower, at $11,062, and it has an unemployment rate of just 4.4%.
Its young adult population also shot up 41% from 2012 to 2022.
“Salt Lake City is the perfect city for Gen Z,” says Salt Lake City real estate agent Joel Carson, president and principal broker at Utah Real Estate. “There’s always something to do in our very walkable city—from world-class skiing, hiking, and boating. There are phenomenal restaurants here for those who are foodies. Plus, there are five national parks just a few hours’ drive away.”
The top five are below.
Median home price: $589,900
Median home price: $236,900
Median home price: $234,900
Median home price: $529,900
Median home price: $315,950
Among the 10 most populous U.S. cities, Phoenix was named the best for Gen Z, with an average federal student loan burden of $12,567 per borrower.
“Phoenix has a really hot job market,” says Stacy Miller, real estate agent for The Miller Team at Re/Max Fine Properties in Phoenix.
“A lot of tech-based companies from other states and even overseas have moved their offices and warehouses here. I’m working with a Z-er now who’s buying his first home after moving from California for a job here.”
The rest of the top five all happen to be in Texas, where the average federal student loan burden is $12,933 per borrower.
Median housing price: $475,000
Median housing price: $599,000
Median housing price: $425,000
Median housing price: $285,994
Median housing price: $325,990
In the past 10 years, the West has seen the biggest boost in its young adult population, at 4.4%. It was followed by the South, at 3.4%.
Meanwhile, the Northeast’s young adult population decreased by a staggering 9.6% in the past decade.
The high cost of living might have influenced this decline in the Northeast, according to researchers at Money Geek.
New York City and Philadelphia had the most significant declines, each losing 15% of their young adult population.
“It is hard for Gen Z in New York City,” says Nikki Beauchamp, an associate broker with Sotheby’s International Realty in New York City. “From a rental perspective, people often need to consider getting roommates or renting out rooms to be able to afford it.”
Of her clients who are looking to buy, Beauchamp says Gen Z is getting creative—they’re thinking about buying multifamily units in the boroughs with friends, or purchasing property outside of the city together while still renting in the city.
While young people are fleeing New York City and Philadelphia, they’re heading toward Round Rock, TX, and Alexandria, VA.
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