Gen Z leads in homeownership, especially in the Midwest, outpacing millennials and Gen X

Gen Z is crashing the housing market party, buying homes faster than their elders — especially in the Midwest.

A recent SmartAsset analysis reveals that cities like Indianapolis, St. Louis and Cincinnati are seeing a surge in Gen Z homeowners, while California and the Northeast lag behind.

Under 25 and unstoppable, these young buyers are snagging homes at a remarkable rate.

In 2023, nearly 28% of 24-year-olds owned homes, outpacing millennials and Gen X at that age, according to a January Redfin report . A whopping quarter of Gen Z, aged 19 to 26, jumped into homeownership last year.

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Indianapolis tops the list with the highest share of Gen Z homeowners among major US metro areas.

Although only 1.6% of the local Gen Z population bought homes, it’s the best rate among 40 large cities. These 2,266 new homeowners are grabbing properties with a median value of $225,000 and earning a median income of $65,000.

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St. Louis followed closely, with just below 1.6%, or 2,649, Gen Z homebuyers. There, the median property value is $185,000, and these young owners earn about $63,000 a year.

Other hotspots include Jacksonville, Virginia Beach and Kansas City — while Detroit, Cleveland and Pittsburgh offer homes typically below $200,000 with incomes under $65,000.

Despite Texas’ booming growth, none of its cities made the top 10 for Gen Z homeownership.

Meanwhile, San Francisco, New York City, Los Angeles and Boston show the lowest rates, with San Francisco’s median home value for Gen Z surpassing $1 million and only 93 homes purchased by Gen Zers last year.

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Gen Z’s edge over older generations might be luck or timing. Millennials started their careers during the 2008 recession, while older Gen Zers benefited from low mortgage rates in 2020 and 2021. Remote and hybrid work trends have also allowed them to buy in more affordable areas.

Social media has demystified the homebuying process, with platforms like YouTube and TikTok offering tips on buying young.

Additionally, many Gen Zers living with parents save more, enabling them to buy homes earlier. Multigenerational living has surged over the past two decades, with a Pew Research Center report highlighting this trend.

However, the future isn’t all rosy. High student debt, soaring mortgage rates and housing shortages could make it tough for Gen Z to maintain this homeownership streak. Predictions of sustained high interest rates and home values suggest that those who haven’t bought yet might struggle to do so.

A Bank of America report from July found that nearly half of Gen Z relies on family financial help, as they face higher daily expenses and lower wages adjusted for inflation compared to their parents.

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