Millennial and Gen Z Veterans accounted for more than half of all VA purchase loans in a record year for this historic benefit program. Gen Z in particular is starting to make its presence felt in markets across the country.
Millennial and Generation Z homebuyers helped drive the VA loan program to a record year in Fiscal Year 2021.
The VA backed more than 1.4 million loans in FY21, eclipsing last year's previous all-time high by nearly 200,000 loans. VA purchase loans were up 3.6% from last year, marking the 10th consecutive year of annual increases. With rates still hovering near modern-day lows, refinance remained the story of VA lending this fiscal year.
But younger homebuyers continue to make their mark in a major way.
Millennial and Gen Z Veterans accounted for 52% of all VA purchase loans in FY21, a 6.6% increase from last fiscal year.
While Millennials represent the bulk of VA purchase lending, Gen Z in particular is starting to make its presence felt in markets across the country. VA purchase loans were up 84% year over year for this group.
Key Takeaways for Top 50 Metro Areas
- Virginia Beach again topped the list for most VA purchase loans to Millennial and Gen Z Veterans (10,477), followed by Washington, D.C. (8,099), San Antonio (5,541), Colorado Springs (5,022) and Dallas-Fort Worth (4,515). The Top 5 were the same five cities as the previous two years, with Colorado Springs jumping ahead of Dallas this year.
- Nearly half of the Top 50 metro areas came from Texas (six), Florida (six), Georgia (five), North Carolina (four) and Washington (three).
- 22 markets saw a year-over-year increase of 10% or more, while seven markets experienced a 20%+ increase.
- Fayetteville, N.C., jumped four spots from last year to round out the Top 10.
Top 50 Cities for Millennial and Gen Z VA Buyers
| MSA | FY 2020 VA Purchase Loans | FY 2021 VA Purchase Loans | % Difference |
|---|---|---|---|
| Virginia Beach-Norfolk-Newport News, VA-NC | 8,532 | 10,477 | 22.8% |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | 6,969 | 8,099 | 16.2% |
| San Antonio, TX | 4,919 | 5,541 | 12.6% |
| Colorado Springs, CO | 4,770 | 5,022 | 5.28% |
| Dallas-Fort Worth-Arlington, TX | 4,791 | 4,515 | -5.76% |
| San Diego-Carlsbad-San Marcos, CA | 4,368 | 4,308 | -1.37% |
| Houston-Sugar Land-Baytown, TX | 3,433 | 3,752 | 9.29% |
| Riverside-San Bernardino-Ontario, CA | 3,260 | 3,702 | 13.5% |
| Phoenix-Mesa-Scottsdale, AZ | 3,928 | 3,688 | -6.11% |
| Fayetteville, NC | 2,951 | 3,588 | 21.5% |
| Jacksonville, FL | 3,297 | 3,399 | 3.09% |
| Clarksville, TN-KY | 2,859 | 3,293 | 15.2% |
| Killeen-Temple-Fort Hood, TX | 2,786 | 3,278 | 17.6% |
| Atlanta-Sandy Springs-Marietta, GA | 3,130 | 3,232 | 3.26% |
| Jacksonville, NC | 3,034 | 3,187 | 5.04% |
| Seattle-Tacoma-Bellevue, WA | 3,138 | 3,141 | 0.10% |
| Baltimore-Towson, MD | 2,536 | 2,982 | 17.5% |
| Tampa-St. Petersburg-Clearwater, FL | 2,666 | 2,779 | 4.24% |
| Las Vegas-Paradise, NV | 2,466 | 2,722 | 10.4% |
| Chicago-Naperville-Joliet, IL-IN-WI | 2,473 | 2,721 | 10% |
| Pensacola-Ferry Pass-Brent, FL | 1,982 | 2,261 | 14.1% |
| Denver-Aurora, CO | 2,312 | 2,240 | -3.11% |
| Fort Walton Beach-Crestview-Destin, FL | 1,917 | 2,213 | 15.4% |
| St. Louis, MO-IL | 1,840 | 2,081 | 13.1% |
| Honolulu, HI | 1,651 | 1,975 | 19.6% |
| Augusta-Richmond County, GA-SC | 1,685 | 1,970 | 16.9% |
| El Paso, TX | 1,629 | 1,929 | 18.4% |
| Oklahoma City, OK | 1,843 | 1,821 | -1.19% |
| Los Angeles-Long Beach-Santa Ana, CA | 1,667 | 1,799 | 7.92% |
| Charleston-North Charleston, SC | 1,565 | 1,615 | 3.19% |
| Minneapolis-St. Paul-Bloomington, MN-WI | 1,594 | 1,584 | -0.63% |
| Kansas City, MO-KS | 1,413 | 1,504 | 6.44% |
| Columbia, SC | 1,271 | 1,492 | 17.4% |
| Savannah, GA | 1,173 | 1,479 | 26.1% |
| Tucson, AZ | 1,407 | 1,433 | 1.85% |
| Austin-Round Rock, TX MSA | 1,601 | 1,394 | -12.9% |
| Miami-Fort Lauderdale-Pompano Beach, FL | 1,300 | 1,359 | 4.54% |
| Olympia, WA | 1,265 | 1,337 | 5.69% |
| Orlando-Kissimmee, FL | 1,270 | 1,315 | 3.54% |
| Portland-Vancouver-Beaverton, OR-WA | 1,224 | 1,282 | 4.74% |
| Columbus, GA-AL | 1,013 | 1,258 | 24.2% |
| Sacramento-Arden-Arcade-Roseville, CA | 1,234 | 1,245 | 0.89% |
| Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | 1,170 | 1,241 | 6.07% |
| Richmond, VA | 1,008 | 1,213 | 20.3% |
| Hinesville-Fort Stewart, GA | 734 | 1,210 | 64.8% |
| Nashville-Davidson-Murfreesboro-Franklin, TN | 1,252 | 1,208 | -3.51% |
| Anchorage, AK | 931 | 1,194 | 28.3% |
| Omaha-Council Bluffs, NE-IA | 1,236 | 1,154 | -6.63% |
| Detroit-Warren-Livonia, MI | 1,113 | 1,136 | 2.07% |
| Charlotte-Gastonia-Concord, NC-SC | 1,164 | 1,128 | -3.09% |
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