The Hottest Housing Markets for VA Buyers So Far in 2025

The VA loan program is on a growth streak in 2025, and some cities are seeing that momentum hit overdrive.

At the halfway point of the fiscal year, VA purchase lending is up nearly 10% compared to the same period in FY 2024, according to a Veterans United Home Loans analysis of government lending data. That lift comes amid a broader rebound in VA lending, including a 45% jump in total loan volume and a 150% increase in refinances compared to the same time period last year.

With mortgage rates on the rise in 2024, VA purchase loans were down 6.8% from the year prior.

While Millennial Veterans continue to represent the bulk of VA purchase activity, the youngest Veterans and service members are helping fuel this year's surge.

Generation Z buyers have seen a 38% increase in VA purchase loans so far this year, with their overall share of the VA purchase market up three percentage points compared to the first two quarters of FY24.

That rise reflects both the growing number of Gen Z service members reaching buying age and the continued appeal of the VA loan in today’s market. With no down payment, no mortgage insurance and more flexible credit standards, the VA benefit offers a powerful homebuying advantage, especially for first-time buyers.

“We’re seeing steady, sustainable growth in VA purchase lending as more Veterans turn to a benefit built to help them compete in today’s housing market,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “These encouraging signs underscore just how vital the VA loan program remains for helping service members and Veterans achieve homeownership.”

Here’s a look at the Top 30 cities that have seen the biggest jump in VA homebuying so far this year.