Gen Z VA buyers are on the verge of transforming the housing market. These younger Veterans and service members were one of the few bright spots in a tough year for VA lending. Here's a closer look at where they're starting to make waves.
The nation’s youngest Veterans are breathing life into housing markets across the country.
VA purchase loans for Generation Z Veterans and service members increased 15.5% in Fiscal Year 2023 over the prior year, according to an analysis of Department of Veterans Affairs data by Veterans United Home Loans.
Despite a challenging inventory and affordability environment, Gen Z Veterans made their emerging presence felt:
- VA purchase loans to this demographic were up 62% from two years ago
- Gen Z Veterans comprised 7.2% of all VA loans, compared to 3.4% the year prior
- Total VA loans to Gen Z Veterans were up 11.8% year over year
Generation Z was the only age group to see a year-over-year increase in what was otherwise a down year for VA lending.
“Generation Z Veterans are ready to step into the spotlight and start making waves in the housing market, signaling a transformative impact in the years ahead,” said Chris Birk, vice president of mortgage insight at Veterans United. “Their significant uptick in VA loan utilization not only highlights their resilience but also underscores the enduring value of the VA loan benefit in helping younger Veterans achieve the American dream of homeownership.”
Nearing its 80th anniversary, the VA loan program has made homebuying easier for generations of Veterans and service members. VA loans help buyers purchase without a down payment or the need for great credit, which are two major hurdles for many younger prospective buyers.
Gen Z’s Housing Market Impacts
Much of the growth in Gen Z buying has been in military-dense communities, which are traditional VA loan strongholds. But larger metro areas and other markets are also seeing more and more Gen Z Veterans buy homes and begin to plant roots.
Below, we break down Gen Z’s growing impact in three distinct charts:
- The first looks at the country’s largest markets for Gen Z VA homebuyers last fiscal year.
- The second shows the housing markets that experienced the biggest year-over-year growth in Gen Z VA homebuying.
- The third chart shows the markets that saw the biggest year-over-year overall gain in Gen Z market share, to include VA purchase and refinance loans.
Top 25 VA Markets for Gen Z Homebuyers
| Housing Market | VA Purchase Loans (FY23) |
|---|---|
| Virginia Beach, Va. | 2,001 |
| Jacksonville, N.C. | 834 |
| Fayetteville, N.C. | 723 |
| San Antonio | 662 |
| Clarksville, Tenn. | 639 |
| Colorado Springs, Colo. | 579 |
| Killeen, Texas | 573 |
| Jacksonville, Fla. | 558 |
| Fort Walton, Fla. | 440 |
| Washington, D.C. | 426 |
| Houston | 410 |
| San Diego | 395 |
| Dallas | 386 |
| Phoenix | 385 |
| El Paso | 360 |
| Pensacola, Fla. | 349 |
| Hinesville, Ga. | 336 |
| Charleston, S.C. | 333 |
| Riverside, Calif. | 328 |
| Tampa | 249 |
| Chicago | 241 |
| Atlanta | 231 |
| St. Louis | 215 |
| Seattle | 214 |
| Savannah, Ga. | 183 |
Top 25 VA Markets for Biggest Jump in Gen Z Homebuying
| Housing Market | VA Purchase Loans (FY23) | % Increase From FY22 |
|---|---|---|
| Houston | 410 | 96% |
| Dallas | 386 | 72% |
| Columbia, S.C. | 165 | 55.7% |
| Atlanta | 231 | 49% |
| Phoenix | 385 | 42.6% |
| San Antonio | 662 | 39% |
| Tampa | 249 | 34.6% |
| Jacksonville, Fla. | 558 | 32.9% |
| St. Louis | 215 | 31% |
| Denver | 154 | 29% |
| Philadelphia | 163 | 29% |
| Chicago | 241 | 26% |
| Charleston, S.C. | 333 | 22% |
| Columbus, Ga. | 173 | 21.8% |
| Omaha | 156 | 19% |
| Pensacola, Fla. | 349 | 18% |
| Riverside, Calif. | 328 | 16% |
| El Paso | 360 | 15.4% |
| Tucson, Ariz. | 176 | 15% |
| Oklahoma City | 281 | 13% |
| Washington, D.C. | 426 | 13% |
| Las Vegas | 289 | 12.9% |
| Seattle | 214 | 12.6% |
| Minneapolis | 153 | 12.5% |
| San Diego | 395 | 10% |
Minimum loan count of 150
Top 25 VA Markets for Biggest Jump in Gen Z Marketshare
| Housing Market | % of Gen Z overall (FY23) | % of Gen Z overall (FY22) | % Point Difference |
|---|---|---|---|
| Jacksonville, N.C. | 26% | 19% | 7% |
| Hinesville, Ga. | 23% | 16% | 7% |
| Clarksville, Tenn. | 19% | 12% | 7% |
| Fort Walton, Fla. | 19% | 12% | 7% |
| Charleston, S.C. | 14% | 7% | 7% |
| Honolulu | 13% | 6% | 7% |
| San Diego | 10% | 3% | 7% |
| Virginia Beach, Va. | 16% | 10% | 6% |
| Fayetteville, N.C. | 16% | 10% | 6% |
| Killeen, Texas | 14% | 9% | 5% |
| El Paso | 14% | 9% | 5% |
| Anchorage | 12% | 7% | 5% |
| Pensacola, Fla. | 10% | 5% | 5% |
| Columbus, Ga. | 10% | 5% | 5% |
| Omaha | 9% | 4% | 5% |
| Jacksonville, Fla. | 9% | 4% | 5% |
| Colorado Springs, Colo. | 11% | 7% | 4% |
| Little Rock, Ark. | 10% | 6% | 4% |
| Oklahoma City | 9% | 5% | 4% |
| Riverside, Calif. | 7% | 3% | 4% |
| Minneapolis | 7% | 3% | 4% |
| Tucson, Ariz. | 7% | 3% | 4% |
| Houston | 6% | 2% | 4% |
| Las Vegas | 6% | 2% | 4% |
This includes VA purchase and refinance loans.
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