A new study suggests that young shoppers are more prevalent in smaller cities. But
they are on their way to a larger market share.
LendingTree, an online lending marketplace, analyzed about 3.4 million mortgage
purchase applications on its platform during 2022 and found that members of
Generation Z made up nearly 15 percent of potential homebuyers in the nation's 50
largest metropolitan areas. (Generation Z comprises people born between 1997 and
2012, so only those older than that generation are looking to buy homes.)
Where are these young buyers? Salt Lake City had the highest rate of Generation Z
applicants, at 22.6 percent, said LendingTree economist Jacob Channel, author of
the report. Next were Oklahoma City, at 22.4 percent, and Birmingham, Alabama, at
20.8 percent, followed by Indianapolis, Cincinnati, Louisville, Kentucky and
Minneapolis.
Mr. Channel relayed some advice for 20-somethings looking to buy a home: Focus
on raising your credit score and paying off student loans. Shop around for the best
mortgage rate. And take advantage of first-time buyer programs, including Federal
Housing Administration loans, which can ease the burden on young buyers with
smaller down payments and lower credit scores.
Source: The New York Times
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