With mortgage rates significantly higher than the sub-3% rates seen in 2021, Gen Z and Millennial homebuyers are facing a tough housing market. However, Veterans from these generations have an advantage: the VA loan. Thanks to this program, Millennial and Gen Z Veterans enjoy more buying power compared to the average homebuyer. Over the last five years, while loan originations for all buyers have decreased by 26.2%, those for Gen Z and Millennial Veterans using the VA loan have only dropped by 19.9%, a difference of 6.3 percentage points.
Choosing the right place to live for these Veterans depends on several factors, including the local economy, real estate market, and available Veteran benefits. A recent survey of 376 Gen Z and Millennial Veterans revealed that 80% of respondents prioritized population size, 94.5% emphasized cost of living, and 89.5% pointed to the state of the real estate market as a key factor in their decision-making.
Many Veterans prefer smaller towns or cities, and while the following metro areas may seem large, they often encompass surrounding counties with quieter communities. This balance allows Veterans to enjoy the benefits of city amenities—such as healthcare, employment opportunities, and infrastructure—while residing in more tranquil suburban or rural settings.
Finding an affordable yet sizable metro area can be challenging for any prospective homebuyer, but several U.S. cities offer an excellent mix of affordability, quality of life, and Veteran-specific benefits. Here's a closer look at one of the top metros for Gen Z and Millennial Veterans: Tampa-St. Petersburg-Clearwater, FL.
Tampa ranked high on the list of best cities for Gen Z and Millennial Veterans by Veterans United, not only for its sunny weather and vibrant culture but also for the many benefits it offers to Veteran homebuyers. This Florida metro, excels in several key areas:
Veteran Community: With a Veteran population of 6.5%, Tampa ranks 6th in the nation for Veterans per capita. This strong community provides ample networking opportunities, peer support, and a sense of belonging for those transitioning from military life to civilian careers.
- Safety: Safety is a priority for Veterans and their families, and Tampa ranks 8th in violent crime rates and 4th in property crime rates. This makes it a secure place for Veterans to settle down and raise families.
- Food Access: Tampa ranks 10th in the U.S. for food access, which means a large percentage of the population lives within one mile of a grocery store, ensuring convenient access to nutritious food.
- Airport Access: Tampa International Airport is a major travel hub, an important feature for 73.5% of surveyed Gen Z and Millennial Veterans who prioritize proximity to an airport. The ability to travel for work or leisure is a significant factor for many in this age group, making Tampa an appealing choice.
Veteran Benefits in Florida
Florida is one of the most Veteran-friendly states in the U.S., offering numerous benefits that make homeownership more accessible for Veterans. One of the most significant perks is the property tax exemption based on Veteran disability, which can result in substantial savings for eligible Veterans. Florida also does not have a state income tax, which means Veterans won't have to pay taxes on their military retirement, Social Security benefits, or other income.
According to local real estate expert Earl Knighten of The Knighten Group at Boardwalk Realty, “Tampa is a great market for Millennials and Gen Z Veterans and service members because it is still rather affordable to live here, compared to many other major U.S. cities.” Knighten points out that Tampa has a strong military community, thanks in part to nearby MacDill Air Force Base, and offers a thriving job market, making it a desirable location for Veterans seeking career opportunities.
Tampa's appeal goes beyond affordability and Veteran benefits. “Tampa offers a year-round feeling of vacation, with its warm climate and palm trees. Its roots are in diversity, and its upbeat lifestyle extends from downtown Tampa to the suburbs,” says Knighten. The city's cultural amenities, from its vibrant nightlife to waterfront dining, provide Veterans and their families with a fun and dynamic environment to live in.
Overall, Tampa-St. Petersburg-Clearwater stands out as one of the best places for Gen Z and Millennial Veterans to call home in 2024. With its combination of affordability, Veteran benefits, healthcare access, and quality of life, this metro area offers the perfect mix for Veterans looking to transition into homeownership and start the next chapter of their lives.