More Gen Zers applying for homes in SLC than any other U.S. city

Jun 25, 2023, 6:00 AM

SALT LAKE CITY -- Despite the myth that homeownership is impossible for Gen Zers, America's younges...

A sale sign stands outside a home in Wyndmoor, Pa., Wednesday, June 22, 2022. If you’re settling into a new home, you might be looking to fill it with furniture. But after your rent or mortgage, security deposit and moving expenses, there might not be much left over for your dream couch or dining room set. (FILE: AP Photo/Matt Rourke)

(FILE: AP Photo/Matt Rourke)

BY KIRA HOFFELMEYER AND CLAYRE SCOTT

KSLNewsRadio

SALT LAKE CITY — Despite the belief that homeownership is impossible for Gen Zers, America’s youngest adults are taking on more mortgages.

A recent study from LendingTree found that 22.59% of Salt Lake City’s mortgages in 2020-2022 were requested by someone in Generation Z (ages 18 to 25). This puts Salt Lake City as the most popular city for Gen Z homebuyers, with Oklahoma coming in second place at 22.36%.

This is happening despite the fact that SLC has a higher average mortgage amount than many other U.S. cities. In fact, Salt Lake City homeowners are paying 39% more for their mortgage than renters pay in rent.

Related: Utah homeowners pay nearly 40% more per month than Utah renters

So why would young adults buy a home in Utah’s capital? The study wrote that it is likely because of SLC’s “strong jobs market and a good blend of urban and rural amenities.”

The study also found the average SLC Gen Z homebuyer age is 22 and the average down payment amount is $30,456.

In a study by Redfin, the data shows that 30% of 25 years olds owned their own home in 2020– even more than their parents when they were that age. The research references the record-low mortgage rates during the pandemic as an advantage for young adults buying their first home. Despite these encouraging numbers, young Americans are still the least likely to own their home. As LendingTree points out, the challenges facing Gen Zers who wish to buy a home as they age — such as rising mortgage rates — would-be buyers will not have it easy.