10 big U.S. cities where it’s easier for Gen Z to become homeowners
Being able to own a home is a goal for many, but the pandemic, inflation, high home prices and high mortgage rates have made that goal difficult for younger people on entry-level salaries. Gen Z (born between 1997 and 2012) are finding that better options are available in the Midwest and the South, instead of coastal living.
To look at the feasibility of Gen Z owning a home, Point2 recently rated the U.S.’s 100 major cities (including the five New York City boroughs) and ranked them based on seven metrics:
- Home price-to-income ratio to see how many household incomes—where the householder is under 25—would be needed to reach the median home price in a market.
- Median sale price difference to understand how home 2023 prices are more impactful compared to 2022.
- Inventory (per 10,000 residents) to see how many housing options are available.
- Share of homes sold above listing price to assess bidding and competitivity in a market.
- Days on the market to determine how quickly homes sell and measure competitivity
- Homeownership rate to assess the real probability of adults under 25 achieving homeownership.
- Unemployment rate to see where young adults have lower chances of financing homeownership.
Point2 then used weighted averages of the metrics to calculate where Gen Z have a chance at homeownership, and ranked the 100 cities in order. Click the gallery above to see the top 10 cities offering Gen Z the best chance at home ownership.
