Nearly 20% of mortgage purchase requests throughout 2024 and 2025 were made by Gen Z applicants, according to a study released this week by LendingTree.

This demographic — made up of those between the ages of 18 and 28 in 2025 — concentrated its homebuying primarily in affordable Midwestern metro areas.

In Minnesota’s Twin Cities area, 26.4% of mortgage purchase requests came from Gen Z applicants. Birmingham, Ala., had the second highest ratio of requests at 25.7%, followed by Indianapolis at 24.6%.

Matt Schulz, LendingTree’s chief consumer finance analyst, says the popularity of these metro areas comes down to affordability.

“These three metros are considered affordable, though they’re quite different in terms of income levels,” he observed in comments accompanying the study results.

The least active metro areas for these homebuyers were primarily in high-cost coastal markets. Miami, San Francisco and Las Vegas had the lowest shares of Gen Z buyers.

“Right now, many Gen Zers may not yet have the credit scores, incomes or savings needed to afford homes in these markets,” Schulz commented. “But as they move into their prime earning years over the next couple of decades, more opportunities will open up.”

Another common trend is that Gen Z buyers are coming to the table with smaller commitments, with average downpayments and loan amounts significantly lower than their millennial counterparts. This can cut down on their options, Schulz noted.

“That can be frustrating for young people who want to buy a home, but it shouldn’t be surprising that Gen Zers are making smaller downpayments and taking out smaller mortgages than millennials,” he said. “Millennials tend to earn more and have higher credit scores, making them far more likely to successfully apply for a mortgage and to get better terms when they do. Gen Zers will certainly catch up as the years pass, but for right now, millennials are far, far better situated for homeownership than Gen Zers are.”

The largest share of mortgage requests came from millennials (ages 29 to 44 in 2025), who accounted for 40.5% of purchase requests last year. Gen X buyers (ages 45 to 60) ranked second at 26.3%, according to the study.

Overall, Gen Z’s homebuying share rose by 180 basis points from 2024 to 2025, bringing its overall market share from 18.1% to 19.9%