Gen Z Buyers Help Drive VA Purchase Rebound in Fiscal Year 2025

The VA loan program bounced back in a big way in Fiscal Year 2025, reversing the slowdown seen the year before and reminding the market just how durable this benefit can be. 

Total VA loan volume climbed 26.8% year over year, rising from 416,363 to 528,343 loans. Much of that strength came from a steadier purchase market and a surge in refinance activity, both of which helped reset the trajectory after a tougher FY24.

Purchase lending was a major part of that recovery. Generation Z played an outsized role. 

This demographic had already been the only age group to show year-over-year purchase growth in FY24, and they carried that momentum forward in a big way.

Gen Z VA purchase loans jumped 38% in FY25. No other generation came close to that pace: Baby Boomers were up nearly 7%, Millennials gained just over 5%, Gen X rose less than 2%, and the Silent & Greatest generations edged up about 2.8%.

“Gen Z is expanding its footprint faster than any other group of VA buyers,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “They’re entering the market at a time when affordability is a real challenge, and the VA loan’s hard-earned benefits are helping them compete and succeed. Their growth is reshaping what the next decade of military homebuying will look like.”

VA Loans Nationwide

Overall, VA purchase loans rose 8.5% year over year, from 298,327 to 323,835. That stands in sharp contrast to last year’s dip, when purchase volume fell more than 5% from FY23. 

While affordability challenges and limited inventory continued to shape the market, the VA loan’s zero-down payment advantage again proved to be a meaningful tool for buyers trying to break into homeownership.

Refinancing also came roaring back in FY25. Total VA refinances rose 73.2%, driven heavily by a resurgence in streamline loans. 

VA IRRRLs more than doubled — up 135%, from 50,826 to 119,459 — while VA Cash-Out refinances climbed 26.5% to 85,049. Though still far from the peaks of the pandemic years, refinancing became a bigger part of the overall picture again as borrowers looked for opportunities to improve their rate or tap equity.

Top 25 Markets for Gen Z Buyers

Gen Z’s rise wasn’t just about national growth — it showed up clearly on the map. 

The fastest-growing markets for Gen Z VA buyers stretched across Texas, the Carolinas, California, and a mix of major metros and traditional military communities. These markets posted year-over-year gains well above the national average for this age group, reflecting where younger service members and Veterans are putting down roots.

Below is the list of the Top 25 Gen Z Purchase Markets for FY25.