Top 50 Cities for Millennial and Generation Z Veteran Homebuyers

The historic VA loan program had its biggest year ever in Fiscal Year 2020. Millennial and Generation Z Veterans played a big part in driving that record growth.

The VA backed 1,246,815 loans in FY20, the most in the program's 76-year history and the first time it's ever guaranteed more than 1 million loans. With interest rates hovering at modern lows for most of the year, refinance loans surged for all age demographics.

But when it came to buying homes, younger Veterans led the way.

Millennial and Generation Z Veterans accounted for 50 percent of all VA purchase loans in FY20. While total VA purchase loans were up about 11 percent year-over-year, VA purchase lending to Millennials jumped 19 percent, according to government data. The VA's fiscal year runs from October through September.

Because of their VA mortgage benefits, Millennial Veterans have been ahead of the homebuying curve compared to their civilian counterparts. VA loans allow qualified buyers to purchase with no down payment, no mortgage insurance and more flexible credit guidelines. Plus, many younger Veterans don't face the same student loan debt that younger civilians face.

These younger Veterans and service members have emerged as a critical economic force in communities across the country.

Metro Area Takeaways

• Virginia Beach had the largest overall number of VA purchase loans Millennial and Generation Z buyers (8,532), followed by Washington, D.C. (6,970), San Antonio (4,919), Dallas-Fort Worth (4,791) and Colorado Springs (4,770).
• The Top 5 cities were nearly unchanged from FY19, with Dallas and Colorado Springs swapping places.
• Of the Top 50 cities for most VA purchase loans for Millennials and Generation Z buyers, Sacramento saw the biggest year-over-year gain (33.5 percent), followed by Fayetteville, N.C. (33 percent), San Diego (32.9 percent), Denver (32 percent) and Riverside, Calif (31.9 percent).
• Twenty-four metro areas experienced VA purchase loan growth of at least 25 percent year-over-year
• Four states had at least four metro areas represented on the list: Texas and Florida (six MSAs) each, North Carolina (five MSAs) and California (four MSAs).

Top 50 Cities By Purchase Loans for Millennial & Gen Z Buyers

Top 50 Cities for VA Loan Growth in Millennial & Gen Z Buyers

Developing the Top Cities List

Veterans United Home Loans has been the country's largest VA purchase lender since 2016.

To create our Top 50 cities list, we obtained demographic data from the Department of Veterans Affairs and combined purchase loan figures for both Millennials and Generation Z for FY20 and compared them to the figures for FY19.

Metro areas needed at least 2,000 purchase loans over the two-year span to be included in the analysis.

We define Millennials those born between 1981 and 1996, with Generation Z starting in 1997.