Fort Wayne, Indiana, is the best city for Gen Z homebuyers to achieve homeownership in 2024, according to a new study by Point2. The study ranked the 100 largest U.S. cities based on seven metrics that measure the feasibility and affordability of buying a home for adults under 25.
Fort Wayne Offers Financial Relief and Stability for Young Buyers
Fort Wayne scored 84.20 out of 100 in the study, ranking particularly high in terms of the home price-to-income ratio and the unemployment rate among the younger segment of the population. The median home price in Fort Wayne is $179,900, which is 4.8 times the median income of Gen Z householders ($37,500). This means that young buyers would need less than five years of income to afford a home in the city, compared to the national average of 9.4 years.
The unemployment rate for adults under 25 in Fort Wayne is also low, at 4.1%, which is below the national average of 6.8%. This indicates that young adults have better chances of finding and keeping a job in the city, which is essential for financing homeownership.
Fort Wayne also boasts a high homeownership rate of 13.9% among Gen Z householders, which is the second-highest among the 100 cities analyzed. This shows that homeownership is not only achievable, but also a common choice for young adults in the city.
Other Cities in the South and Midwest Follow Fort Wayne’s Lead
The study found that the South and Midwest regions dominate the top 10 list of cities where Gen Z has the best chance at homeownership in 2024. These regions offer lower home prices, higher inventory, and less competition than the coastal markets, making them more attractive and affordable for young buyers.
The top 10 cities are:
- Fort Wayne, IN
- Corpus Christi, TX
- Detroit, MI
- Laredo, TX
- Memphis, TN
- Lincoln, NE
- Durham, NC
- Fort Worth, TX
- Aurora, CO
- Scottsdale, AZ
Corpus Christi, Texas, ranked second in the study, with a score of 82.80. The median home price in the city is $189,900, which is five times the median income of Gen Z householders ($38,000). The city also has a high inventory of 23.8 homes per 10,000 residents, and a low share of homes sold above listing price (9.7%).
Detroit, Michigan, ranked third in the study, with a score of 81.60. The median home price in the city is $55,000, which is the lowest among the 100 cities analyzed. The city also has the best home price-to-income ratio of 1.8, meaning that young buyers would need less than two years of income to afford a home in the city. The homeownership rate among Gen Z householders in Detroit is 16.7%, which is the highest among the 100 cities analyzed.
Gen Z Faces Unique Challenges and Opportunities in the Housing Market
Gen Z, the youngest American cohort born between 1997 and 2012, is entering the housing market amid a global crisis, a volatile economy, and a historic housing shortage. The cohort faces unique challenges and opportunities in their homebuying journey, as they have different preferences, values, and goals than older generations.
According to the study, Gen Z values wellbeing, comfort, and affordability when choosing where to buy a home. They also inherited the affordability concerns of millennials, such as student debt and the rising cost of living. However, they also have some advantages, such as being tech-savvy, adaptable, and resilient.
The study also revealed that the share of Gen Z householders who own their home is 16.9%, which is expected to grow as the cohort matures and enters the workforce. The study projected that by 2025, Gen Z will account for 10% of all homeowners in the U.S.
