Here are the reported best cities for veterans looking to buy homes with VA loans
Millennials and Gen Z veterans looking to buy homes are finding new opportunities in several key cities, according to a new ranking by Veterans United Home Loans.
Veterans United has released its list of the cities offering greater housing affordability, job opportunities, and quality of life for younger veterans and first-time buyers.
The East Coast dominates the list, with four of the top 10 markets, while the Midwest and South account for the remaining six. These rankings come at a time when Millennial and Gen Z homeowners represent 41% of today’s homebuyers, according to the National Association of Realtors. Veterans United also reports that younger veterans accounted for the largest share of VA loan buyers in 2023.
Here are the top 10 markets for VA loan buyers, ranked in order:
- Tampa-St. Petersburg-Clearwater, Fla.
- San Antonio-New Braunfels, Texas
- Cleveland-Elyria, Ohio
- Rochester, NY
- Buffalo-Cheektowaga, NY
- St. Louis, Mo.
- Detroit-Warren-Dearborn, Mich.
- Birmingham-Hoover, Ala.
- Providence-Warwick, R.I.-Mass.
- Houston-The Woodlands-Sugar Land, Texas.
“As home prices continue to rise and with interest rates double what they were just two years ago, first-time buyers are in a challenging position. Thanks to the VA loan, Millennial and Gen Z Veterans and service members have the benefit of reduced upfront costs and no PMI, making homebuying more affordable,” said Chris Birk, vice president of mortgage insight at Veterans United. “The top 10 markets provide what Millennials and Gen Z are looking for in terms of quality of life, some of the most affordable housing prices in the country, and compelling job opportunities for life after the military.”
The analysis for the best markets took several factors into account, including the metro area’s median home price, unemployment rate, and population of Millennials and Gen Z. Each city is close to a military base and located in states that don’t tax military retirement pay - key considerations for veteran buyers.
Among the top 10 cities, seven have median home prices below the national average of $373,667. Cleveland, ranked third, offers the lowest median home price at $272,450, while Providence has the highest at $599,450, which remains affordable compared to other East Coast markets.
Cities like San Antonio, Rochester, and Birmingham are emerging as hubs for younger populations. Millennials and Gen Z make up 46% of San Antonio’s population and 42% in both Rochester and Birmingham, according to Census Bureau data.
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Each of these cities offers not just affordability but strong employment opportunities, as well as recreational activities, cultural events, and vibrant nightlife. Tampa, ranked number one, is recognized for its beaches, year-round warm weather, and affordability. Meanwhile, cities like Cleveland, Buffalo, and Detroit, despite their cold winters, provide access to year-round outdoor activities and proximity to Canada.
Healthcare is another strength in these markets. Cleveland is home to the world-renowned Cleveland Clinic, while St. Louis hosts Barnes-Jewish Hospital, one of the country’s top healthcare institutions.
Birk also highlighted the advantages of VA loans, which don’t require down payments or mortgage insurance. Additionally, with large veteran populations in these markets, there is potential for buyers to assume existing mortgages, often at lower interest rates.
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