(NewsNation) — Gen Z homebuyers have gotten the short end of the real estate stick with skyrocketing interest rates and housing prices, but many have found respite in some lesser traveled cities, a new analysis shows.
Gen Z individuals are buying homes at the fastest rate in many Midwestern cities like Indianapolis, St. Louis and Cincinnati, an analysis conducted by financial technology company SmartAsset found.
Just over 1.6% of local Gen Z individuals bought homes in the Indianapolis area in 2023, more than any other major metro, according to the analysis.
A total of 2,266 mortgages were issued to those less than 25 years old, with an average property value of $225,000.
The analysis utilized the Home Mortgage Disclosure Act data for 2023, looking at people under age 25 and also comparing Gen Z incomes, interest rates and property values for successfully closed homes.
Across 40 of the largest U.S. metro areas, the median home value for new Gen Z homeowners is $305,000.
It found the best interest rates in the San Antonio metro area, where the average rate was 5.8%, compared to the 6.5% average across new Gen Z mortgages studied.
The median new Gen Z homeowner in Pittsburgh, Pennsylvania and St. Louis, Missouri, metro areas earns $63,000 annually.
Unsurprisingly, homes in the Bay Area were most expensive for Gen Z overall, with the median home value in San Francisco eclipsing $1 million. Less than 100 homes were purchased by Gen Z in the San Francisco metro last year.
Housing affordability is a top voting issue for Gen Z as the presidential election draws closer.
More than 60% of Gen Z worry they might never own a home, citing significant barriers to homeownership, according to a survey from Clever Real Estate, a St. Louis-based real estate company.