Where Veterans Buy Homes: Top VA Loan Markets of the Past 5 Years

Veterans and service members have turned to their home loan benefit in waves in recent years. Created 80 years ago this June, the VA loan program helps put homeownership more in reach for those who serve.

This no-down payment mortgage features flexible credit underwriting, closing cost limits and the industry’s lowest average interest rates. The VA has backed nearly 30 million loans over the last eight decades, with 15% coming in the last five years alone.

This hard-earned benefit also continues to help younger Veterans and service members break into the housing market ahead of their civilian counterparts. Nearly 60% of all VA purchase loans went to Millennial and Generation Z buyers last year.

Top 25 Markets for VA Buyers (FY23-FY19)

First, we’ll take a look at the Top 25 markets for all VA purchase loans over the last five years. Then we’ll provide separate breakdowns for the top markets for Millennial buyers and Gen Z buyers.

Top 25 Markets for Millennial VA Buyers (FY23-FY19)

Millennial Veterans and service members have become the dominant force in VA lending over the last five years.

The VA loan benefit was built to help Veterans buy homes without the need for a down payment or top-tier credit. Those are two primary hurdles keeping scores of prospective civilian homebuyers on the sidelines.

Meanwhile, nearly 1 million Millennial Veterans and service members have used this benefit to become homeowners in the last five years alone, accounting for just under half of all VA purchase loans since Fiscal Year 2019.

Here’s a look at where Millennial Veterans and service members are buying:

Top 25 Markets for Gen Z VA Buyers (FY23-FY19)

This youngest demographic is just starting to make their presence felt in housing markets across the country.

Over the last five years, Gen Z Veterans have accounted for about 4% of all VA purchase loans. But they’ve experienced big gains in the last year in particular, when purchase loans were up a whopping 62% compared to just two years ago.

Here’s a look at where Generation Z Veterans and service members are buying: