Birmingham ranked #3 most popular metro for Gen Z homebuyers

(Nathan Watson / Bham Now)

A recent report by online lending marketplace LendingTree ranked Birmingham as the 3rd most popular metro in the country for Gen Z homebuyers. See why Birmingham ranked so high + what this could mean for The Magic City.

Gen Z loves The Magic City

TJ Tower
Thomas Jefferson Tower in Birmingham. (Nathan Watson / Bham Now)

The older portion of Generation Z (born roughly between 1997 and 2012) are starting to buy their first homes—but where? To answer that question, LendingTree analyzed mortgage purchase requests from adult Gen Z users of their platform across the nation’s 50 largest metros in 2022.

Their report found that Salt Lake City (UT) ranked 1st in most popular metros for Gen Z homebuyers, followed closely by Oklahoma City (OK) and Birmingham (AL). Meanwhile, the least popular metros among Gen Z were San Fransisco (CA), New York (NY) and San Jose (CA).

According to the LendingTree report, Gen Z accounted for 20.79% of mortgage requests in Birmingham, while the average age of Gen Z homebuyers in The Magic City is 22. In addition, the report includes that:

  • The average credit score among potential Gen Z homebuyers is 679
  • The average down payment amount among potential Gen Z homebuyers is $22,024
  • The average requested loan amount among potential Gen Z homebuyers is $215,894

According to Fulton Williams, a local real estate agent with LAH Sotheby’s International Realty, Birmingham has a multitude of aspects that are extremely attractive to young homebuyers—especially when they don’t feel like they’re having to sacrifice location and lifestyle just to afford a home.

“Birmingham’s outstanding medical facilities have always invited waves of new buyers as medical rotations take place, but as Birmingham’s tech, banking and service industries grow, we see Birmingham moving to a new level. Here, affordability and lifestyle can go hand in hand. The Bar and Restaurant scene cannot be ignored — and the fact that Birmingham has something for everyone. Whether you enjoy weekly happy hours and football or craft cocktails and rooftop bar, they’re only a few minutes apart. Lifestyle is important to Gen Z, and not feeling like you’re breaking the bank with a mortgage allows you to keep doing the things you love in this great city.”

Fulton Williams, LAH Sotheby’s International Realty

What does this mean for Birmingham?

Kelly Hotel
Downtown Birmingham as seen from the Kelly Hotel. (Nathan Watson / Bham Now)

So, aside from bragging rights (#3 most popular metro for Gen Z, woo! 🎉) why does this matter? Although adult Gen Z’ers only account for roughly 14.91% of potential homebuyers in the 50 largest metros (according to LendingTree), that percentage will only grow over time as Gen Z ages and their earnings increase.

“I think that in the next 5-10 years we will see Birmingham’s market get more and more competitive. The increase in home price that may have cooled off or even dropped in big primary markets is not affecting Birmingham, especially our luxury market. I think we will continue to see a steady climb as the leaders of Birmingham City and our Over the Mountain areas continue to bring new job opportunities, restaurants and entertainment to the area—it’s an exciting time to be in Birmingham!”

Fulton Williams, LAH Sotheby’s International Realty

Excited to see Birmingham rank so high among Gen Z homebuyers? Tag us @bhamnow to let us know your thoughts!

Nathan Watson
Nathan Watson

Senior Content Producer at Bham Now

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