New Veterans United analysis finds the youngest Veterans increasingly using VA loans to enter a housing market where the average buyer age is now 40
COLUMBIA, Mo., Dec. 10, 2025 /PRNewswire/ — The VA loan program rebounded sharply in Fiscal Year 2025, reversing last year’s slowdown and underscoring the resilience of one of the nation’s most powerful homebuying benefits. A new analysis from Veterans United Home Loans, the country’s largest VA lender, released today shows total VA lending climbed 26.8% year over year, rising to 528,343 loans from 416,363 in Fiscal 2024.
Much of that momentum came from a steadier purchase market and a major surge in refinancing, signaling renewed confidence among Veterans and service members navigating a still-challenging affordability landscape.
Generation Z played an outsized role in the VA program’s resurgence during the fiscal year ending Sept. 30. The youngest cohort of military buyers was the only age group to post year-over-year purchase gains in Fiscal 2024. They carried that momentum forward, accounting for 38% of VA loan activity in Fiscal 2025. Gen Z Veterans also led all other generations in purchase growth, far outpacing older military borrowers.
VA Purchase Loans by Generation
|
Generation |
FY25 |
FY24 |
% Difference |
|
Gen Z |
47,802 |
34,616 |
38 % |
|
Baby Boomers |
46,285 |
43,272 |
6.96 % |
|
Millennial |
152,513 |
144,678 |
5.42 % |
|
Silent & Greatest |
5,133 |
4,993 |
2.8 % |
|
Gen X |
72,102 |
70,768 |
1.89 % |
“Gen Z is expanding its footprint faster than any other group of VA buyers,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “They’re entering the market at a time when affordability is a real challenge, and the VA loan’s hard-earned benefits are helping them compete and succeed. Their growth is reshaping what the next decade of military homebuying will look like.”
Overall, VA purchase loans rose 8.5% year over year, to 323,835 from 298,327. This marks a strong turnaround from Fiscal 2024, when purchase volume fell more than 5% from Fiscal 2023.
As younger buyers continued gaining traction, the VA loan’s hallmark features, especially its zero-down payment advantage, remained a key tool for first-time and affordability-constrained borrowers.
While activity remains below historic highs from the pandemic era, refinancing again became a significant part of the VA lending landscape as borrowers sought opportunities to improve their rate or tap equity. Total VA refinances jumped 73.2% year-over-year with cash-out refinances accounting for slightly over a quarter (26.5%) of refi activity.
The fastest-growing destinations for Gen Z VA buyers included major metros and traditional military hubs across Texas, the Carolinas and California. These markets posted growth well above the national average for this age group, highlighting where the youngest Veterans and service members are choosing to put down roots.
Top 25 Gen Z VA Loan Purchase Markets (by growth)
|
Market Rank |
Metro |
FY25 VA Purchases |
FY24 VA Purchases |
YoY % Difference |
|
1 |
Houston-Sugar Land- Baytown, Texas |
838 |
522 |
60.5 % |
|
2 |
Killeen-Temple-Fort Hood, Texas |
974 |
611 |
59.4 % |
|
3 |
Phoenix-Mesa-Scottsdale, Ariz. |
689 |
437 |
57.6 % |
|
4 |
Dallas-Fort Worth-Arlington, Texas |
928 |
595 |
55.9 % |
|
5 |
Las Vegas-Paradise, Nev. |
449 |
290 |
54.8 % |
|
6 |
Chicago-Naperville-Joliet, Ill. |
484 |
313 |
54.6 % |
|
7 |
Washington-Arlington- Alexandria, D.C.-Va.-Md.- W.Va. |
855 |
555 |
54.0 % |
|
8 |
Charleston-North- Charleston, S.C. |
509 |
348 |
46.2 % |
|
9 |
Baltimore-Towson, Md. |
429 |
296 |
44.9 % |
|
10 |
Columbia, S.C. |
366 |
257 |
42.4 % |
|
11 |
Riverside-San Bernardino- Ontario, Calif. |
603 |
424 |
42.2 % |
|
12 |
San Diego-Carlsbad-San Marcos, Calif. |
541 |
382 |
41.6 % |
|
13 |
Atlanta-Sandy Springs- Marietta, Ga. |
440 |
314 |
40.1 % |
|
14 |
Oklahoma City, Okla. |
435 |
313 |
38.9 % |
|
15 |
Tampa-St. Petersburg- Clearwater, Fla. |
446 |
327 |
36.3 % |
|
16 |
San Antonio, Texas |
1,362 |
1,006 |
35.3 % |
|
17 |
Augusta-Richmond County, Ga.-S.C. |
365 |
276 |
32.2 % |
|
18 |
Colorado Springs, Colo. |
788 |
610 |
29.1 % |
|
19 |
St. Louis, Mo-Ill. |
364 |
283 |
28.6 % |
|
20 |
Jacksonville, N.C. |
1,112 |
867 |
28.2 % |
|
21 |
Jacksonville, Fla. |
833 |
653 |
27.5 % |
|
22 |
Virginia Beach-Norfolk- Newport News, Va.-N.C. |
2,411 |
1,902 |
26.7 % |
|
23 |
El Paso, Texas |
547 |
439 |
24.6 % |
|
24 |
Fayetteville, N.C. |
995 |
843 |
18.0 % |
|
25 |
Hinesville-Fort Stewart, Ga |
438 |
386 |
13.4 % |
To view the full report, visit: https://www.veteransunited.com/education/gen-z-buyers-help-drive-va-purchase-rebound/
About Veterans United Home Loans
Based in Columbia, Missouri, the full-service national direct lender financed more than $23.8 billion in loans in Fiscal Year 2025 and is the country’s largest VA lender, according to the Department of Veterans Affairs Lender Statistics. The company’s mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.
VeteransUnited.com | 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS #1907 (www.nmlsconsumeraccess.org). A VA-approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. For state licensing information, visit https://www.veteransunited.com/licenses/. Equal Opportunity Lender.
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SOURCE Veterans United Home Loans
