Gen Zers aren't buying homes in SF
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More Gen Zers are looking to break into the home market — but not in San Francisco, new data shows.
Why it matters: High housing costs and a supply crunch have made it harder, especially for younger people, to become homeowners, even as Gen Zers are expected to make up a bigger piece of the homebuying pie as they get older.
The big picture: Gen Z, roughly ages 12-28 today, represented 13% of U.S. home mortgage applications in 2024, up from 10% in 2023, according to an analysis by CoreLogic, an industry data provider.
- Relatively affordable parts of the Midwest and South saw the highest Gen Z shares, while pricey coastal metros lagged behind.
Zoom in: San Francisco, where the median home price is $1.4 million, stands in sharp contrast.
- Gen Z comprised about 4% of home mortgage applications in the area, per CoreLogic.
The fine print: CoreLogic researchers analyzed 2024 mortgage applications, accepted or not, and they excluded investors, second-home buyers and cash buyers.
Reality check: Many who take the plunge get help from mom and dad.
- Younger generations are increasingly banking on family money for down payments, Redfin research shows.
- And house hunters commonly ask loved ones for cash instead of traditional wedding or baby gifts.
Yes, but: Though San Francisco offers some programs for first-time homebuyers with low to moderate incomes, 93% of homeowners in the area are 35 and older, census data found.
Stunning stat: You need to make over $400,000 a year to afford the mortgage on a median-priced home here.
- That's much higher than the $115,000 salary needed for the typical U.S. home.
What to watch: Some aspiring homeowners are getting creative — splitting a mortgage with friends or buying rental properties in cheaper cities.