(KRON) — One Bay Area city was named the most difficult for Gen Z to become homeowners, according to a study by Point2 released this month. Fremont was named the worst U.S. city where Gen Z “stands a chance of owning a home.”
Fremont received an affordability score of 11.63 out of 100 for Gen Z homebuyers*.
Of the 102 cities analyzed, Fremont ranked third-worst in “home price-to-income ratio” (22.8), fourth in inventory per 10,000 residents (6.4), and last in “home sold over price” (70.2%) and Gen Z homeownership rate (1.4%).
San Jose was the other Bay Area city to rank in the bottom five. It received a score of 23.85, which is the fourth-worst in Gen Z homeownership. The average home price in San Jose is about $1.3 million, according to Zillow.
No California city cracked the top 50 of the list.
Fort Wayne, Ind. ranked No. 1 as the most ideal city for someone in Gen Z to become a homeowner. It received a Gen Z affordability score of 84.20. Point2 analyzed 102 of the biggest U.S. cities based on 2021 census estimates, the study said.
Point2 scored 100 of these U.S. cities on a score out of 100 on most affordable for Gen Z — the higher the score the better chance a member of Gen Z could be a homeowner in that city. The score was based on the weighted averages of the following metrics.
Home Price-to-Income Ratio
Year-Over-Year Median Sale Price Changes
Gen Z Homeownership Rate (owner-occupied units where the householder is under 25 years old out of total housing units occupied by under 25-year-olds)
Unemployment Rate for those under 25 years old
Inventory per 10,000 Residents
Share of Homes Sold Above Listing Price
Days on Market (DoM)
“A lower unemployment rate means higher chances of financing homeownership,” Point2 says. The higher the ownership rate for those under 25 means the higher the probability that age group buys a home.
The study also used real estate sources such as Redfin, Zillow, Realtor and PropertyShark. To read the full report from Point2, click here.
*Gen Z is defined as anyone who was born between 1997 and 2012, according to Pew Research Center.