Meanwhile, the next generation up from Gen Z is increasing its hold on the mortgage market.
By the end of the fourth quarter of 2019, Millennials’ share of primary home loan originations grew from 46% from 48%. Meanwhile, Gen X’s share fell to 32% from 34% last year. Baby Boomer’s share remained constant at 17%.
The median price of a home purchased by Gen Z is $160,600, which rose by 7% but it is still lower than what Millennials are paying ($256,500). Gen X and Baby Boomers increased their purchase prices by 4%.
Although there is a considerably narrower price gap in homes by each generation, the gap in down payments is consistent. According to the report, Gen Zers are putting down 5% on their home purchases, on average, while Millennials are putting down 8.5%.
Growth in mortgage debt by Millennials is continuously outpacing Baby Boomers and Gen X, with the median loan amount taken by Millennials increasing.
According to the report, Millennials are taking out a median loan amount of $242,100 in December, which is 8.4% higher than last year.
In a study from LendingTree, Millennials are apparently moving north. Now, it seems that the generation after it is moving south.
Gen Z seems to be gravitating towards smaller Midwestern and Southern markets, focusing on inexpensive starter homes with a median purchase price of $160,600, increasing by 11% over the past year.
The top Generation Z markets which ranked lower on the millennial list include Winston-Salem, North Carolina; Oklahoma City and Toledo, Ohio, all of which ranked in the top 10 on the Gen Z list but only 47 to 71 on the Millennial list, the report said.