Study says in this Kentucky city, it's almost impossible for Gen Z to buy a home

Marina Johnson, Louisville Courier Journal
·3 min read
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Many young Americans are currently facing the harsh reality of the home buyers’ market, where it’s nearly impossible for members of Gen Z, and some Millennials, to purchase the home of their dreams.

And to make matters even worse, a new study revealed this Kentucky city is one of the toughest places to become a homeowner.

Buying a home in Lexington

The second largest city in the state and the “Horse Capital of the World,” Lexington is known for its stellar bourbon distilleries and thoroughbred racehorses, and now it’s being recognized for its unaffordability.

According to a recent study conducted by Point2, Lexington is the No. 3 most difficult city nationally for Gen Z to become homeowners. The research evaluated 100 major U.S. cities and the realistic ability for Gen Z members to purchase a home there by the use of metrics including home price-to-income ratio, median sale price difference, inventory, share of homes sold above listing price, days on market, homeownership rate and unemployment.

Home prices have risen in metro Detroit, even as mortgage rates have surged.
Home prices have risen in metro Detroit, even as mortgage rates have surged.

How affordable is Lexington for Gen Z 'soon-to-be' homeowners?

It’s no secret major cities like San Diego and Los Angeles would be at the forefront for low homeownership and unaffordability among Gen Z members, but Lexington, Kentucky, is bound to take some by surprise. Ranked as the No. 3 worst location to become a homeowner as a member of Gen Z, Lexington scored 23.85 out of 100. Furthermore, Gen Z homeowner rates were only 3.5% with a Gen Z unemployment rate of 12.8%.

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How affordable is Louisville for Gen Z 'soon-to-be' homeowners?

According to Point2 data, Louisville is the place to be for members of Gen Z hoping to purchase a home. With a score of 59.75 out of 100, Louisville was ranked as the No. 39 best city in the U.S. for young home buyers, with a Gen Z homeownership rate of 17.4%.

What cities are ranked highest nationally for Gen Z homeowners?

The top ten cities for Gen Z members eager to purchase a home include:

  • Fort Wayne, IN

  • Corpus Christi, TX

  • Detroit, MI

  • Laredo, TX

  • Memphis, TN

  • Lincoln, NE

  • Durham, NC

  • Fort Worth, TX

  • Aurora, CO

  • Scottsdale, AZ

Fort Wayne, Indiana, the top affordable city for Gen Z’s, scored 84.20 of 100 based on the metrics, while the tenth location, Scottsdale, AZ, scored 72.78 of 100. Other data for other cities falls between these two numbers.

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What cities are ranked lowest nationally for Gen Z?

  • Fremont, CA

  • San Diego, CA

  • Lexington, KY

  • San Jose, CA

  • Riverside, CA

  • Los Angeles, CA

  • Sacramento, CA

  • Chula Vista, CA

  • Richmond, VA

  • Newark, NJ

The worst-ranked city on the list, Fremont, California, known to be unaffordable to Gen Z members, scored 11.63 out of 100, while the tenth-ranked worst city on the list, Newark, New Jersey. scored 27.30 out of 100.

This article originally appeared on Louisville Courier Journal: Lexington, Kentucky, in top three for poor Gen Z home buyers market