Millennials and Generation Z now represent the majority of military veterans and active-duty homebuyers, but not all cities provide favorable housing conditions for them. To identify the best markets, Veterans United Home Loans conducted a study focused on cities that offer strong benefits for current and former military members from these generations. The study revealed that the most promising housing markets are concentrated on the East Coast and in the Midwest.
A key finding of the study was that top-ranked cities were often near military bases and located in states that do not tax military retirement pay. Tampa, Florida, emerged as the top city for military homebuyers. Despite a higher median home price of $424,950, Tampa’s low unemployment rate of 3.6% and high quality of life score secured its position at the top of the list.
Other cities rounding out the top five include San Antonio, Cleveland, Rochester, and Buffalo. Additional cities in the top 10 are St. Louis, Detroit, Birmingham, Providence, and Houston.
Chris Birk, vice president of mortgage insight at Veterans United, acknowledged the challenges facing first-time buyers due to rising home prices and interest rates. However, he emphasized that Veterans Administration (VA) loans offer critical advantages for Millennial and Gen Z veterans, such as reduced upfront costs and no requirement for private mortgage insurance, making homeownership more accessible.
“The top 10 markets provide what Millennials and Gen Z are looking for in terms of quality of life, affordable housing, and strong job prospects for life after the military,” Birk said.
The study was based on several key factors, including Veterans United’s quarterly Veteran Homebuying Report, which surveys veterans on their housing preferences. It also took into account the median home price, the population of Millennial and Gen Z veterans, and the unemployment rate in each metropolitan area. Additionally, the analysis was restricted to metro areas with a population of at least 1 million, reflecting the preferences of younger veterans for big-city living.
