Gen Z Homebuyers Flock to Minneapolis, Birmingham, and Other Affordable U.S. Cities
According to LendingTree's 2025 report, young homebuyers from Generation Z (ages 18-28) are prioritizing affordable cities in the U.S. Minneapolis, Minnesota, tops the list with 26.4% of inquiries, increasing from 23.6% in 2024. Birmingham, Alabama, also saw significant growth, jumping from 19.6% to 25.7%. Other cities that rank highly include Indianapolis, Indiana; Kansas City, Missouri; Milwaukee, Wisconsin; Cincinnati, Ohio; and Nashville, Tennessee. The share of mortgage requests from Gen Z rose from 18.1% to 19.9%. On average, they make down payments of $44,966 and take out loans of $274,794. Minneapolis buyers have an average credit score of 690, while Birmingham's is 667 and Indianapolis's is 679. Nashville's increase occurs despite rising prices, underscoring the importance of affordability for new homeowners.
Key facts
- Minneapolis has the largest Gen Z homebuyer share at 26.4% of mortgage requests in 2025, up from 23.6% in 2024.
- Birmingham saw the biggest jump in Gen Z share, from 19.6% to 25.7%, a 6.1 percentage point increase.
- Nationally, Gen Z's share of mortgage requests rose from 18.1% to 19.9% between 2024 and 2025.
- Gen Z buyers nationally put down an average of $44,966 and borrow $274,794.
- Minneapolis Gen Z buyers have an average credit score of 690, above the national Gen Z average of 674.
- Birmingham Gen Z buyers have an average credit score of 667, below the national average.
- Nashville's Gen Z share grew from 19.6% to 24.0%, a 22.1% increase, with higher down payments and loans.
- Matt Schulz, LendingTree's chief consumer finance analyst, attributes trends to income and credit profiles.
Entities
Institutions
- LendingTree
Locations
- Minneapolis
- Minnesota
- Birmingham
- Alabama
- Indianapolis
- Indiana
- Kansas City
- Missouri
- Milwaukee
- Wisconsin
- Cincinnati
- Ohio
- Nashville
- Tennessee
- United States
Sources
- Quartz —