(NewsNation) — Millennials and Generation Z veterans might soon reshape the housing market, as VA loans offer them greater buying power compared to typical homebuyers.
Millennials and Gen Z homeowners make up 41% of today’s homebuyers, according to the National Association of Realtors. They also represented the largest share of VA buyers in 2023, according to Veterans United Home Loans, the nation’s largest VA lender.
Finding the ideal home for this group depends on local economies, real estate markets, city and state benefits, and personal preferences. Veterans United’s Best Cities for Millennial and Gen Z Veteran Homebuyers 2024 report highlights the best cities for their housing affordability and job opportunities.
“The top 10 markets provide what Millennials and Gen Z are looking for in terms of quality of life, some of the most affordable housing prices in the country, and compelling job opportunities for life after the military,” said Chris Brink, vice president of mortgage insight at Veterans United.
Here are the top 10 best cities for Millennials and Gen Z veteran homebuyers, according to Veterans United:
- Tampa–St. Petersburg Clearwater, Florida
- San Antonio-New Braunfels, Texas
- Cleveland-Elyria, Ohio
- Rochester, New York
- Buffalo-Cheektowaga, New York
- St. Louis, Missouri
- Detroit-Warren-Dearborn, Michigan
- BirminghamHoover, Alabama
- Providence-Warwick, Rhode Island-Massachusetts
- Houston-The Woodlands-Sugar Land, Texas
Veterans United surveyed 376 millennial and Gen Z veterans to identify key factors in choosing a place to live. The survey found that 80% prioritize population size, 94.5% focus on cost of living and 89.5% consider the state of the real estate market.
In February, Veterans United reported a 15.5% increase in VA purchase loans for Gen Z veterans and service members in fiscal year 2023 compared to the previous year.
Additionally, VA purchase loans to this group increased by 62% over the past two years. Year over year, VA loans to Gen Z veterans rose by 11.8%, with Gen Z veterans making up 7.2% of all VA loans, up from 3.4% the previous year.
