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.
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.
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