1 in 4 First-Time Mortgages Now Belong to Gen Z: How to Win Their Business
In the first quarter of 2025, GenZ accounted for approximately 25% of all first-time homebuyer mortgages issued–and indicator that this generation is stepping into the housing market faster than expected. (MortgageTech)
Let’s explore why they’re buying now, how they’re doing it, and practical ways mortgage professionals can better serve them.
Who Is Gen Z—and Why Is Their Homebuying Momentum Surging?
Gen Z, born between roughly 1997 and 2012, are true digital natives–comfortable researching online, using apps, and communicating via text and video.
Recent data shows:
They now make up 25% of first-time mortgage originations in Q1 2025. (MortgageTech)
In more affordable markets like Indiana, South Dakota, and Kentucky, GenZ’s share tops 30%—but drops to just 7% in D.C. and 8% in California (MortgageTech)
Their interest in homeownership is front-loaded: 67% plan to buy in 2025—higher than Millennials (51%) and Gen X (49%). (NationalMortgageProfessional.com)
These trends signal a shift—not just in buyer demographics, but also in how and where Gen Z is buying.
How Gen Z is Approaching Homeownership
Smart Saving Habits & Family Support
Many are saving early and strategically—some staying at home longer or making lifestyle sacrifices. Family assistance remains common, but it’s deployed thoughtfully.
Markets and Mindsets
Gen Z buyers often favor affordable, non-coastal markets. They’re willing to compromise on home condition or neighborhood for long-term equity. (Investopedia)
High Intent—but Price Sensitive
They’re motivated: 67% plan to buy in 2025. But they’re also cautious—58% pulled out of homebuying last year due to cost concerns. (NationalMortgageProfessional.com)
Digital-First Expectations
Gen Z expects friction-free service. Remote tools—digital applications, e-signatures, self-service portals—aren’t optional; they’re expected. (NationalMortgageProfessional.com)
What This Means for Mortgage Professionals
This emerging generation presents both opportunity and challenge:
A fresh market segment: Many Gen Z buyers were previously invisible due to affordability constraints—but are now active with support and patience.
New communication channels: Digital-native clients demand modern communication—text, social, video updates—not just email or phone.
A reputation game: Consultative, empathetic service wins referrals among this networked, value-conscious group.
Tactical Advice for Engaging Gen Z
Be Digital, Be Ready
Offer intuitive online applications, instant document uploads, and SMS status updates. These conveniences are powerful differentiators. (Investopedia)Make Affordability Visual
Use calculators or infographics to show how down payments, FHA loans, and family support add up—make trade-offs tangible.Prioritize Empathetic Guidance
Guide them through FHA, first-time programs, and trade-off conversations. Support without pushing builds trust.Focus on Emerging Markets
Know which affordable metros Gen Z prefers—like Indianapolis or South Dakota—and tailor marketing or outreach accordingly. (Investopedia)Cultivate Long-Term Relationships
If buyers delay, stay connected via newsletters, market updates, and checking in. Persistence, with empathy, pays off.
Why MLOs Who Adapt Will Win
Gen Z isn’t just entering the market—they’re reshaping expectations. As they gain market share, mortgage professionals who:
Speak their language (digital, transparent, consultative)
Meet them where they live (affordable markets)
Stay connected, even if they pause…
…will earn loyalty and referrals. You’re not just closing a loan—you’re building a long-term client relationship.
Ready to Deepen Your Expertise?
Want to stand out by serving Gen Z with confidence? Explore Mortgage Knowledge courses that strengthen your understanding of the products this generation relies on most.
Final Word
With Gen Z now accounting for one in every four first-time mortgages, mortgage professionals have a fresh opportunity—but only if they adapt. Master their preferences, embrace digital-first service, and offer empathetic guidance. Do that, and Gen Z will choose you—today and into the future.
