Gen Z, millennial homebuyers snap up nearly half of Cincinnati-area mortgages

The Cincinnati metro area has become one of the most popular locations for young homebuyers, who accounted for nearly half of all new mortgages issued in the Cincinnati area in 2023, according to a study earlier this year.

Young homebuyers equal about half of Cincinnati-area mortgages

Generation Z homebuyers aged 18-25 and young millennial homebuyers under age 35 took out 46.5% of all new mortgages in the Cincinnati area last year, according to a February 2024 study commissioned by Redfin, a national real estate brokerage.

That ranked Cincinnati No. 2 among the 50 most populous U.S. metro areas for young people carving out the biggest piece of the mortgage pie. Pittsburgh topped the list with 48% of new mortgages in the Steel City issued to buyers under 35 last year.

To make a 20% down payment on a traditional mortgage for a house priced at $300,000 − the median price in the Cincinnati metro area − a Gen Z or millennial buyer would have to come up with $60,000.

Young homebuyers turn to family for help with mortgages

So where are young people just starting their careers getting the money for such a major purchase?

Mom and dad.

That's according to the Redfin study, which found more than one-third of Gen Zers and millennials who planned to buy a home expected to receive a cash gift from family to help fund their down payment.

"I've seen a lot of gift money'' being used for home purchases, said Donna Deaton, a real estate agent with Re/Max Victory + Affiliates in Liberty Township. "I've seen parents refinance their homes and cash out their 401(k) to help them (children) get started. And it's not just parents; siblings, too.''

When singling out the youngest potential homebuyers, the Cincinnati area ranks No. 5 among the most popular destinations for adult Gen Zers, according to a different study from Lending Tree.

Average age of local Gen Z homebuyers 22

In 2022, potential homebuyers with an average age of 22 accounted for 20.27% of mortgage requests from Jan. 1-Dec. 31, according to Lending Tree, which analyzed mortgage purchase requests from Gen Z users of the LendingTree platform in the nation’s 50 largest metro areas.

At 22.59%, Salt Lake City had the largest share of mortgage requests from Gen Zers.

Most popular metros for Gen Z homebuyers

This article originally appeared on Cincinnati Enquirer: Gen Z, millennial homebuyers snap up nearly half of Cincinnati-area mortgages