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Gen Z, those between the ages of 14 and 29, is beginning to enter homeownership, with just 17 percent of the cohort buying homes.
As that share slowly increases as the population ages, one metropolitan area stands out for having the greatest spike in its number of Gen Z households: Tucson, Arizona, according to an analysis of IPUMS data by RentCafe.
The number of Gen Z homeowners in Tucson hit nearly 6,000 in 2023, climbing by more than 170 percent since 2018. The market has benefitted from being home to the University of Arizona, along with strong income growth and a lower cost of living.
Following Tucson, the market with the second-highest growth rate of Gen Z homeowners was Jacksonville, Florida, which saw 58 percent growth since 2018. The city is known for its lower-than-average cost of living.
Tucson and Jacksonville, however, are not the markets with the greatest overall share of Gen Z homeowners. That title goes to Ogden, Utah, which has a total population of more than 89,000 residents — some 41 percent of those belonging to the Gen Z cohort. The city is within commuting distance to Salt Lake City and has homeownership assistance programs that make it attractive to young people looking to plant roots, according to the report.
Detroit was second on RentCafe’s list, with about one in three homeowners in the Gen Z age range. Southern metros — Birmingham, Alabama and Jackson, Mississippi, for instance — also rank high for their shares of Gen Z owners. They also are regions with high income growth for young professionals, and, as a result, top renting markets for this age group as well. Birmingham was the top market for Gen Z renter growth in the country, as its number of Gen Z renters surged by more than 1,300 percent from 2018 to 2023, when this share of the population hit about 24,000.
Ogden’s Gen Z rental market has experienced a lower growth rate, but one that was still markedly high — about 251 percent during the same time period. That was the 88th highest in the country.
On the flip side, San Jose, California, one of the most expensive housing markets in the country, has the smallest share — just 5 percent — of Gen Z homeowners. However, it still recorded the eighth-highest growth rate in the country of Gen Z renters, with its renting population soaring to 31,900 in 2023 from 3,436 in 2018.