Veterans in Huntsville are purchasing homes at a pace not seen in recent years, and a new report from Veterans United Home Loans puts the city on the national radar. Huntsville ranks No. 7 in the country for growth in VA home purchase loan usage, according to midyear 2025 data, with an 18.8 percent increase compared to the same period in 2024.

That growth reflects a broader rebound for the VA home loan program. Nationally, VA purchase activity is up nearly 10 percent, total loan volume has increased 45 percent, and refinances have surged by 150 percent year over year.

“Huntsville was one of the top 10 markets nationally seeing the biggest jump in VA purchase lending at the halfway point of the year,” said Chris Birk, vice president of mortgage insight at Veterans United. “That kind of growth signals that military communities like Huntsville continue to play a leading role in this resurgence.”

According to the report, 851 VA purchase loans were made in Huntsville during the first half of 2025, compared to 716 during the same period last year. While millennials still represent the largest group of VA homebuyers by volume, Generation Z service members are beginning to make their presence known. Birk said that around 80 Gen Z buyers in Huntsville used VA loans in the first half of the year. It is a relatively small number but shows a significant upward trend.

“We’re currently helping 19-year-olds buy homes,” Birk said. “It’s incredible to see, and it speaks to how this benefit is opening doors for young veterans just getting started in life.”

The trend mirrors what happened more than a decade ago as millennials began entering the housing market, often burdened by student debt and lacking the savings for a traditional down payment. VA loans helped remove those barriers then, and they are doing so again now.

“This program was built for exactly this kind of moment,” Birk said. “For young buyers who might otherwise be shut out, the VA loan provides a path to homeownership. There is no down payment requirement, no mortgage insurance, and the credit standards are more flexible. That’s what makes it such a powerful wealth-building tool.”

Even as the broader housing market continues to adapt to changing interest rates and affordability concerns, Huntsville’s growth aligns with national trends. Other cities in the top 10 include Sacramento, Portland, Omaha, Little Rock, Raleigh, Columbus, Seattle, Tucson, and Detroit.

While VA purchase activity dipped in 2024, down 7 percent due to high interest rates, Birk said 2025 is showing a very different pattern. Many veterans who bought homes in recent years are now refinancing under more favorable conditions, contributing to the sharp rise in overall loan volume.

“Refinances are playing a big role this year, especially for buyers who locked in at higher rates in 2022 or 2023,” he said. “But purchase lending is up as well, and that’s a strong sign.”

Birk also emphasized the deeper meaning of the program’s continued success.

“This benefit is doing what it was created to do more than 80 years ago,” he said. “It’s helping service members, veterans, and their families plant roots, build generational wealth, and access a piece of the American dream. That’s especially important in communities like Huntsville where military service and opportunity go hand in hand.”

The full report is available at: Veterans United: The Hottest Housing Markets for VA Buyers in 2025.