Gen Zer homebuyers are starting to make a dent in the share of mortgage deals made in some of the trendiest metropolitan areas in the country.
Young adults are more eager than their millennial predecessors to buy homes and bring with them credit scores and savings that compare well with older competing home buyers, experts said. Among people born between 1997 and 2012, Gen Zers between the ages of 18 and 24 accounted for about 10% of homebuyers in the nation’s 50 largest metros last year, according to LendingTree.
Mortgage and real estate professionals have praised the financial habits of the next generation, suggesting that Gen Z wants to capitalize on rising home values.
“These guys and gals have a credit score of around 700. They’ve really done their homework,” said Andy Shelby, senior loan officer and assistant branch manager at Broker House Lending in Louisville, Kentucky. “They don’t teach you that stuff in school. I don’t know how they prepared to become owners.”
LendingTree analyzed the percentage of mortgages offered to Gen Z adult users of LendingTree’s online lending market in 2021 and ranked the 10 most popular metros among this age group. National Mortgage News spoke to local professionals who explained why Gen Zers are saying no to ultra-expensive coastal markets and choosing to settle in these markets instead.
Some of the quotes have been edited and condensed for clarity.