20% of homebuyers are Gen Z — here’s where they’re buying

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Gen Z is making steady inroads into the U.S. housing market, now accounting for nearly one in five mortgage purchase requests nationwide –  but the generation’s presence is much stronger in some markets than in others, according to a new analysis.

Researchers at LendingTree analyzed mortgage purchase requests submitted by LendingTree users between Jan. 1, 2024, and Dec. 31, 2025, across the nation’s 50 largest metropolitan areas.

Gen Zers are buying in the Minneapolis

By the numbers:

Across the 50 largest U.S. metros, the Gen Z presence was especially strong in the Midwest. 

High angle aerial shot of residential streets in Minneapolis, Minnesota at sunset. (Credit: Getty Images)

Minneapolis ranked first, with Gen Zers accounting for 26.4% of mortgage purchase requests there. 

This was followed by Birmingham, Alabama (25.7%), and Indianapolis (24.6%).

What they're saying:

"These three metros are considered affordable, though they’re quite different in terms of income levels," Matt Schulz, the LendingTree chief consumer finance analyst, said. "Minneapolis has the highest incomes of the three, with Indianapolis next, and then Birmingham. Minneapolis also has the advantage of being in a state whose residents typically have high credit scores." 

High-cost metros lag

The other side:

In contrast, high-cost coastal markets lagged. Miami (12.4%), San Francisco (12.8%) and Las Vegas (12.8%) had the lowest shares of Gen Z buyers.

LendingTree said the findings could be due to the financial hurdles that homebuyers in these areas face. San Francisco and Miami had among the top 10 highest average down payments for Gen Zers, at $140,005 and $64,393, respectively. San Francisco also had the largest average requested loan amount ($621,577) and the highest average credit score (699). 

Dig deeper:

Despite San Francisco’s lag in purchases, the city had one of the highest homebuying activity increases (33.9%) nationwide from 2024 to 2025 for Gen Z. 

The national share of Gen Z mortgage purchases rose by 9.9%, with Virginia Beach, Virginia (37.1%) and Birmingham, Alabama (30.9%) also seeing the largest increases.

"Many older Americans are stuck on the sidelines, unwilling to trade their old, low-rate mortgage for one with today’s higher rates," Schulz continued. "That likely means more first-time buyers in the market, and many of those are Gen Zers."

Conversely, six metros saw the share of Gen Z mortgage requests decline, led by Miami with a 10.5% decrease. Portland, Oregon (-3.7%), and Orlando, Fla. (-3.1%), followed.

Millennials still dominate the homebuying market

Big picture view:

While Gen Z is starting to show up, millennials continue to dominate the housing market, accounting for 40.5% of mortgage purchase requests in 2025. Gen Xers ranked second at 26.3%, followed by Gen Zers at 19.9% and baby boomers at 12.7%.

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Further, Gen Z buyers are generally entering the market with smaller financial commitments than millennials are making. Their average down payments ($44,966) and loan amounts ($274,794) are notably lower than those of millennials ($72,412 and $356,655, respectively).