Birmingham is the third most popular metro for Generation Z homebuyers in the nation according to a recent study published by financial assistance website LendingTree using their own site’s mortgage request data.

This increase in demand among the generation born between 1997 and 2012 – and other young generations – suggests a bright future for the city, according to representatives for the Birmingham Business Alliance (BBA). But it could also lead to fewer home options and a subsequent increase in home prices according to previous statements from Bennie Waller, a William Cary Hulsey faculty fellow with the Culverhouse College of Business at The University of Alabama.

“It all boils down to a supply/demand issue,” Waller previously told the Lede. “So generally speaking, the larger the demand, the higher prices are going to be.”

Demand will continue to increase over the next few years, Waller predicted, as Millennials and members of Gen Z come to terms with the fact that the interest rates of their younger years are a thing of the past.

“Gen Z has never seen interest rates other than three, four, or five percent,” said Waller previously. “For my generation and other older generations six, seven, and eight percent is not an unrealistic interest rate. If I’ve got good credit, I could probably get an interest rate in the upper fours maybe lower fives. I wouldn’t hesitate to do that because it’s not unrealistic.”