Gen-Z has entered the home-buying game, and they’re settling in Charlotte, according to Better data provided to Axios Charlotte.
Why it matters: Charlotte’s good at attracting young people. It also offers a relatively affordable lifestyle (compared to larger cities) with job opportunities in major, high-paying industries like banking and tech.
- Credit Karma, Robinhood, Better and Microsoft are all expanding here — and attracting the new generation.
State of play: Based on application volume there are more Gen-Z homebuyers in Charlotte than any other East Coast city. Nationally, Charlotte ranked No. 2, just behind Houston, according to Better. The top 5 cities are:
Millennials still make up the majority of homebuyers in Charlotte, but the number of Gen-Z buyers is growing. Gen-Z Better mortgage applications increased 57% from January to March 2021, and are up 124% year-over-year.
- Millennials are now in their mid-20s to late-30s (born between 1981 and 1996).
- The oldest Gen-Zers are in their early 20s (born between 1997 and 2012).
Who’s buying: The typical Gen-Z buyer has a credit score of 727 with a total monthly income of $7,640, Better reports. The average loan amount is $255,445.
- Though the number of Gen-Z homebuyers is on the rise, they still make up the smallest portion of buyers.
- In Q1, Gen-Zers made up 3.6% of total Better mortgage applications. Millennials were more than half and Gen-X was 23.6%.
Zoom out: The median home sales price in Charlotte is $315,000, and the average list price in April was $416,042. It’s difficult to find and win the bid for a house at that $300K or less price point that Gen-Z seems to be targeting.
- Millennials and Gen-Xers have nearly twice as much income and are taking out loans around $410,000, on average, giving them a little more edge in this market.
Of note: Charlotte is also a popular destination among Gen-X homebuyers. It’s the fourth most popular city among Better applicants. The top five for that generation are: Houston, Austin, Chicago, Charlotte and Los Angeles.
Bottom line: The demand for residential real estate in Charlotte spans all generations, even the youngest young professionals.