Gen Z eyes homeownership: Top U.S. cities for young adults revealed

There are 68 million Gen Zers in the United States, with many of them reaching the age of 27 this year. Nearly half of these individuals aspire to purchase a home within the next five years, according to a survey by Realtor.com®. The survey reveals that more than half still reside with family, while 18% either own a home or are married to someone who does.

In Tallahassee, Florida, and Madison, Wisconsin, the highest percentages of homeowners under 25 are found. The median home prices in these cities are $275,000 and $395,500 respectively.

For those ready to move out on their own, MoneyGeek conducted a study identifying top cities for young adults under 25. This analysis considered factors such as income levels for young adults, homeownership rates and population size, student loan burdens, and access to amenities like food and entertainment.

Salt Lake City emerged as the leading city where young adults can thrive financially. "Salt Lake City is the perfect city for Gen Z," said Joel Carson from Utah Real Estate. The city boasts low federal student loan debt per borrower at $11,062 and an unemployment rate of 4.4%. Additionally, its young adult population increased by 41% from 2012 to 2022.

The top five cities overall include Salt Lake City (UT), Abilene (TX), Des Moines (IA), Boise (ID), and Las Cruces (NM). Among larger cities, Phoenix was identified as best suited for Gen Z due to its vibrant job market and average federal student loan burden of $12,567 per borrower. "Phoenix has a really hot job market," commented Stacy Miller from Re/Max Fine Properties in Phoenix.

The remaining top big cities all located in Texas are Austin, Dallas, San Antonio, and Houston with varying median housing prices.

Over the past decade, there has been significant growth in young adult populations in the West by 4.4%, followed by the South at 3.4%. Conversely, the Northeast experienced a notable decline of 9.6%, attributed largely to high living costs according to MoneyGeek researchers.

Nikki Beauchamp from Sotheby’s International Realty noted challenges faced by Gen Z in New York City due to rental costs requiring creative solutions such as shared purchases or renting rooms together.

While New York City and Philadelphia saw declines in their young adult populations—each losing around 15%—cities like Round Rock (TX) and Alexandria (VA) witnessed substantial growth rates of 160% and 106%, respectively between 2012-2022.