Homeownership Among Military Households Surges in These Cities

Homeownership among military households is surging in four cities in particular, a new report by Realtor.com® has found.

These metros have several things in common, namely affordable median home prices, strong communities, and deep ties to—and respect for—the military.

“Specifically, among the top 100 metros, Myrtle Beach, SC, saw the highest homeownership among military households, followed by Des Moines, IA, Deltona, FL, and Palm Bay, FL,” says Realtor.com® economist Jiayi Xu in her analysis.

Homeownership is likely also growing in these areas as VA loans give military households a powerful edge in today’s housing market.

“In my experience, the only time that buyers do not use their VA home loans is if they own other properties and do not have enough VA eligibility left to do a VA loan when purchasing,” says Jill Vodicka, sales associate at Re/Max Connections in Carlsbad, CA.

Vodicka is a U.S. Coast Guard Veteran married to a retired Navy officer, and her son is on active duty. About 70% of her business is active-duty or VA homebuyers.

“I have only had two buyers ever that were VA-eligible that did not use their VA home loan,” Vodicka says. “Both of them were because they had other homes with VA loans that they were keeping and did not have enough eligibility for it to make sense.”

It’s rare for a buyer with VA eligibility to not use a VA home loan because the product is such a great option, she explains.

Curious where Veterans are putting their VA loans to good use? Here’s a look at the cities with the largest military homeownership.

Cities with the highest military homeownership

Myrtle Beach, SC

Median home list price: $294,900
Homeownership among military households: 92.9%

Myrtle Beach appeals to military families for many reasons, including its idyllic beach setting and its affordability.

The median home price there in October was $130,050 less than the nation’s average, which was $424,950 in October.

Myrtle Beach was a military town for nearly 50 years. It was home to the U.S. Army Air Corps during World War II and to the Myrtle Beach Air Force Base from 1955 to 1993.

The beach town still does a lot to honor the city’s military history, including a monthlong celebration in May called “Myrtle Beach Military Appreciation Days.” It features more than a dozen free events, including a JROTC Drill Competition and a parade with a grand marshal.

Past grand marshals have included Apollo 11 astronaut Buzz Aldrin and the late Sen. John McCain.

Kimberly Miles, vice president and director of tourism media relations for Visit Myrtle Beach, notes that the city offers Veterans Day events, military discount packages, and resources for military family reunions.

Additionally, the weather in Myrtle Beach is phenomenal, boasting an annual median temperature of 73 degrees Fahrenheit, with an average of 215 sunny days per year.

Des Moines, IA

Median home list price: $240,000
Homeownership among military households: 88.8%

Military families are drawn to Des Moines for its great schools, low crime rate, and affordable cost of living.

Despite being a big city, it has a small-town feel that appeals to service members, Veterans, and their families.

The city has many organizations that support the military, including Home Base Iowa, which connects Iowa businesses with Veterans and their spouses who are looking for job opportunities. In fact, 40% of Iowa employers say they prefer to hire Veterans.

The organization also offers assistance to military families who are transitioning to civilian life in Iowa.

There are many other resources available to Veterans, including Bunker Labs DSM, which helps transitioning service members who want to start a business thrive.

Deltona, FL

Median home list price: $318,450
Homeownership among military households: 87.5%

One reason Deltona appeals so much to Veterans and service members is its location.

In sunny Deltona, locals get to enjoy all that Florida has to offer. But because it’s inland, the city is more protected from hurricanes and tropical storms.

But residents don’t give up water access altogether, since Deltona is on the north side of Lake Monroe, one of the largest lakes in the Orlando area.

Organizations like Veterans Florida provide career, SkillBridge, and entrepreneurship opportunities for separating and retiring U.S. service members and Veterans.

“The strong sense of community in Deltona, where many residents have military backgrounds, provides valuable support for Veterans, service members, and their families,” says Ron Myers of Ron Buys Florida Homes in Wellington, FL.

Another big draw of Florida is that it has no state income tax, which means military pensions can go even further.

Palm Bay, FL

Median home list price: $295,000
Homeownership among military households: 85.8%

Family-friendly Palm Bay boasts year-round sunshine and close proximity to Orlando’s theme parks.

As part of the “Space Coast” (the Florida region around the Kennedy Space Center and Cape Canaveral), Palm Bay also has a growing, diverse economy. It’s easy on the pocketbook as well.

“Palm Bay offers affordable housing and a lower cost of living compared to larger cities, which makes it easier for families to settle in comfortably,” says Myers.

Palm Bay offers a wealth of resources for service members and Veterans, including the Palm Bay VA Clinic, which offers primary care, and the Palm Bay Veteran Services office, which assists with benefits, health care, and employment opportunities.

There’s also a Veterans of Foreign Wars post where Veterans can gather and socialize, and the Veterans Memorial Park hosts a Veterans Day parade and celebration.

Florida also offers special benefits for service members, Veterans, and their families, including state employment preferences; education and tuition assistance; homestead tax exemptions; and hunting and fishing license privileges.

Cities with the lowest military homeownership

Meanwhile, the top three metros that saw the lowest homeownership among military households are Urban Honolulu, HI, at 55.1%; San Diego, at 62.6%; and El Paso, TX, at 64.7%.

Ryan Dossey, co-founder of the real estate brokerage SoldFast, is married to a Navy psychologist, and they’re stationed in San Diego.

“I do believe that the average military family is simply being priced out of the San Diego real estate market,” he says.

A mortgage payment on a median-priced home there “would far exceed the basic allowance for housing, or BAH,” explains Dossey.

The Realtor.com Mission Zero campaign, in partnership with Veterans United, provides information on Veteran homebuying benefits, including zero down loans.