(NEXSTAR) – For purchasing a home, american nightmare Rising mortgage rates and home prices have taken a toll on Gen Zers in recent years, but there are some cities that offer new hope in 2024.
According to a recent analysis, Point 2 Holmes We found that Gen Z buyers have entry-level incomes, are more likely to have no home equity, and are most likely to own a home in the South and Midwest.
The study looked at seven indicators: home prices relative to income, median sales price difference between 2023 and 2022, inventory, number of homes sold above listing, days on market, home ownership rate, and unemployment rate. Ranked the 100 largest cities in the country using a weighted score based on .
“Although still new to the housing market, Gen Z’s home buying patterns are already different from those of older generations due to their unique life experiences,” the study’s authors note. “Having grown up during a global crisis, they value well-being and will do whatever feels right. And for many, what feels right is stability early in life. . When Millennials were the same age”
When it comes to the top-rated cities for Gen Z homebuyers, Fort Wayne, Indiana received the highest score, followed by Corpus Christi, Texas. Detroit, Michigan. Laredo, Texas. Memphis, Tennessee. Lincoln, Nebraska. Durham, North Carolina. Fort Worth, Texas. Aurora, Colorado. and Scottsdale, Arizona.
Fort Wayne earned the top spot thanks to its low home price-to-income ratio and low unemployment rate among Gen Z.
The study also found that Gen Z homebuyers looking to purchase a home in a coastal state like California may want to think again. Seven of the 10 “toughest” cities for Gen Z are located in the Golden State (Fremont, San Diego, San Jose, and Riverside). , Los Angeles, Sacramento, and Chula Vista, respectively).
But California isn’t alone. Lexington, Kentucky, is the third most difficult city for Gen Z to buy a home due to a combination of low inventory, high unemployment rates for those under 25, and low median income, according to a study. found.
While the home-buying process is easier for baby boomers who already have ownership in other homes, soaring mortgage rates are creating a market that is less attractive to all generations.
Experts say the situation could change in 2024, but the ultra-low interest rates of 2020 and 2021 are not sustainable.
“2023 was a bad year for homebuyers, but 2024 will be better as mortgage rates fall and housing becomes more affordable.” Said Holden Lewis, NerdWallet’s home and mortgage expert, says in the company’s 2024 Home Buyer Report: “In fact, ‘reducing unaffordability’ might be a better way to put it. In 2024, buyers will have a harder time finding affordable housing, but the home-buying experience will… may not be as dire as 2023.”
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