Veterans United Names Best Cities for Millennial and Gen Z Veteran Homebuyers

September 5, 2024

• Millennial and Gen Z account for more than 40% of today's homebuyers
• In 2023, Millennials and Gen Z made up the largest share of Veteran and military buyers
• Eight of the top 10 cities are in the East and Midwest, where housing affordability makes them prime markets for younger and first-time homebuyers

COLUMBIA, Mo., Sept. 5, 2024 - Veterans United Home Loans, the nation's largest VA lender, today released its list of Best Cities for Millennial and Gen Z Veteran Homebuyers. The top 10 markets offer younger and first-time Veteran buyers greater housing affordability, job opportunities and quality of life.Home to four of the top 10 markets, the East Coast ranks as the nation's best region for Millennial and Gen Z Veteran homebuyers. The remaining six markets are evenly divided between the Midwest and South. Millennials and Gen Z homeowners comprise 41% of today's homebuyers, according to the National Association of Realtors. They also accounted for the largest share of VA buyers in 2023, according to Veterans United analysis of federal data.Ranked in order, the top 10 markets for VA loan buyers are: Tampa-St. Petersburg-Clearwater, Fla.; San Antonio-New Braunfels, Texas; Cleveland-Elyria, Ohio; Rochester, N.Y.; Buffalo-Cheektowaga, N.Y.; St. Louis, Mo.; Detroit-Warren-Dearborn, Mich.; Birmingham-Hoover, Ala.; Providence-Warwick, R.I-Mass. and Houston-The Woodlands-Sugar Land, Texas."As home prices continue to rise and with interest rates double what they were just two years ago, first-time buyers are in a challenging position. Thanks to the VA loan, Millennial and Gen Z Veterans and service members have the benefit of reduced upfront costs and no PMI, making homebuying more affordable," said Chris Birk, vice president of mortgage insight at Veterans United. "The top 10 markets provide what Millennials and Gen Z are looking for in terms of quality of life, some of the most affordable housing prices in the country, and compelling job opportunities for life after the military."To determine the top cities for Millennial and Gen Z Veteran homebuyers, the analysis considered the most important factors to younger buyers based on Veteran United's quarterly Veteran Homebuying Report, along with the metro's median home price, population of Millennials and Gen Z, and the unemployment rate. Since both Millennials and Gen Z Veterans indicated a strong preference for living in a big city, the analysis was limited to metropolitan areas with a population of 1 million or more.Each city is located within close proximity to a military base and in a state that does not tax military retirement pay, important factors for Millennial and Gen Z homeowner hopefuls. Most offer a lower-than-average cost of living and median home price compared to other large metros, with seven of the top 10 cities registering a median home price lower than the national figure ($373,667). Third-ranked Cleveland has the lowest median home price at $272,450 and Providence (No. 9) the highest at $599,450, which is still affordable compared to other large East Coast markets.In addition, each of these cities have large and growing Millennial and Gen Z populations. In fact, San Antonio, Rochester and Birmingham – ranked second, fourth, and eighth, respectively – are becoming meccas for younger populations. Millennials and Gen Z make up more than 46% of San Antonio's population, while Millennials and Gen Z account for 42% of Rochester's and Birmingham's population, according to the latest Census Bureau data.Each city offers strong employment opportunities and fun in terms of cultural events, outdoor activities, and vibrant nightlife and restaurant scenes. Top-ranked Tampa is increasingly celebrated not just for its beaches and warm year-round weather, but also for its affordability and strong military community. Often associated with cold winters, snow and ice, Cleveland, Rochester, Buffalo (No. 5), and Detroit (No. 7) are near lakes and boast highly ranked park systems, which offer year-round outdoor activities. Both Buffalo and Detroit provide easy access to Canada.In addition, each has exceptional healthcare facilities; Cleveland is home to the world-renowned Cleveland Clinic and Barnes-Jewish Hospital in St. Louis (No. 6) ranks among the top hospitals in the country.

Birk noted that Veterans and service members have the advantage of using a VA loan, which doesn't require a down payment or mortgage insurance. In addition, with large concentrations of Veterans already in these markets, there is potential for obtaining an assumable mortgage, which allows a buyer to purchase a home by taking over the seller's mortgage, which often comes with a significantly lower interest rate.To see the full analysis, including individual city profiles and a detailed methodology, visit: https://www.veteransunited.com/valoans/top-50-cities-for-millennial-and-generation-z-veteran-homebuyers/

About Veterans United Home Loans

Based in Columbia, Missouri, the full-service national direct lender financed more than $17 billion in loans in Fiscal Year 2023 and is the country's largest VA lender, according to the Department of Veterans Affairs Lender Statistics. The company's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.VeteransUnited.com | 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS # 1907 (www.nmlsconsumeraccess.org). A VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. For State Licensing information, please visit https://www.veteransunited.com/licenses/. Equal Opportunity Lender.