Under-30s: Mortgages, Mortgage Debt and Mortgage Troubles MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

For Americans, owning a home has long been a significant accomplishment and, for some, the “pinnacle of success.” Actually, a lot of Gen Zers today have or are delaying marriage and having kids in order to purchase a home, according to a new LendingTree study.

 However, it’s not always that easy. Homeownership remains a long, winding, and financially stressful path for some buyers seeking the American Dream. In the fifty largest U.S. metro areas, just three point one percent of Americans under thirty have a mortgage, according to a LendingTree research of anonymised credit reports of platform users. However, depending on the metro, that percentage can range from nine point four percent to point eight percent. Here is a look at homeowners under thirty.

 Younger prospective buyers search for homes that are only twenty five percent of the typical price that older buyers consider. On the LendingTree platform, younger buyers searched for mortgages that would cost an average of ninety two thousand three hundred and thirty two dollars in 2024 to buy homes in the fifty largest metro areas. Compared to older buyers’ average of three hundred sixty seven thousand six hundred and eight one dollars, that is seventy four point nine percent less.

 “Rising home prices and consistently high interest rates, combined with stubborn overall inflation, have made homeownership little more than a pipe dream for many Americans,” said Matt Schulz, Chief Credit Analyst at LendingTree. “That’s especially true for twenty somethings, who may also be struggling with relatively new student loan debt. It’s nothing short of a shame.”

Top Ten Metros with the Largest Share of Owners Under Thirties with Mortgages

Note: Source: LendingTree analysis of over thirty two thousand anonymized fourth-quarter 2024 credit reports of adults under thirty in the fifty largest U.S. metros.

Top Ten Metros with the Smallest Share of Under Thirties with Mortgages

 In the fifty major U.S. metro areas, only three point one percent of persons under thirty hold a mortgage, although this varies widely. In Nashville, TN, nine point four percent of people under thirty have a mortgage, compared to eight point four percent in Indianapolis and seven percent in Pittsburgh. In contrast, only point eight percent do so in San Jose, CA; in New York, that number is one point two percent; and in Los Angeles, it is one point three percent. In these bigger, more costly metro areas, homeownership rates are often lower, which could account for some or all of this discrepancy.

Top Ten Metros with the Highest Rate of Mortgage Holders Under Thirty

 Despite making up twenty point three percent of the adult population in the fifty largest metro areas, those under thirty only account for four point seven percent of mortgage holders in the same metro areas listed the the first chart. The greatest rates are found in Indianapolis (ten point two percent of mortgage holders are under thirty), Salt Lake City (nine point four percent), Cincinnati (eight point nine percent), and Oklahoma City (eight point nine percent). New Orleans (two point two percent), Boston (two point two percent), San Jose (two point three percent), and New York (two point three percent) have the lowest rates, respectively.

Top Ten Metros with the Largest Value Difference in Homes Sought by Under Thirties and Older Buyers

 Younger purchasers sought mortgage homes that were eighty eight percent less expensive than those of older buyers in Providence, RI, where the trend was most noticeable. Charlotte, NC, had homes that were eighty six point one percent cheaper, and San Francisco had homes that were eighty four point one percent cheaper. Buffalo, NY (fifty eight percent less expensive), Milwaukee (fifty eight point five percent less expensive), and Salt Lake City (sixty point nine percent less expensive) are at the other extreme.

Providence, RI:

• Average home value among prospective buyers under thirty: $92,768
• Average home value among prospective buyers thirty and older: $775,543
• Dollar difference: $682,775
• Percent difference: Eighty Eight percent

 The total amount of mortgage debt owed by those aged eighteen to twenty nine is $527 billion, or four point two percent of all mortgage debt. Mortgages make up forty four point six percent of this age group’s total debt, which is significantly less than that of other age groups. People between the ages of thirty and thirty nine, for instance, have two point seven trillion dollars in outstanding mortgage debt, or twenty one point five percent, which makes up sixty eight point six percent of their total debt load.

Mortgage Debt by Age Group:

Age Eighteen to twenty Nine

• Outstanding mortgage debt: $527 billion
• Percent of total mortgage debt: Four point two percent
• Percent of age group’s total debt: Forty four point six percent

Age Thirty to thirty Nine

• Outstanding mortgage debt: $2.71 trillion
• Percent of total mortgage debt: Twenty One Point Five Percent
• Percent of age group’s total debt: Sixty Eight Point Six Percent

Age Forty to Forty Nine

• Outstanding mortgage debt: $3.41 trillion
• Percent of total mortgage debt: Twenty Seven Point One Percent
• Percent of age group’s total debt: Seventy Three Point Three Percent

Age Fifty to Fifty Nine

• Outstanding mortgage debt: $2.84 trillion
• Percent of total mortgage debt: Twenty Two Point Six Percent
• Percent of age group’s total debt: Seventy Two Point Six Percent

Age Sixty to Sixty Nine

• Outstanding mortgage debt: $1.91 trillion
• Percent of total mortgage debt: Fifteen Point Two Percent
• Percent of age group’s total debt: Seventy Three Percent

Age Seventy Plus

• Outstanding mortgage debt: $1.18 trillion
• Percent of total mortgage debt: Nine point Four Percent
• Percent of age group’s total debt: Seventy Three Point Eight Percent

“Sure, big-metro dwellers may have higher incomes than their rural or suburban counterparts, but the cost of living and cost of housing can be so astronomically high that it eats up all that extra income—and then some,” Schulz said. “Also, if you’re able to find a home you can afford to buy, it may be so far from your workplace that you spend large amounts of money commuting. It all adds up to a challenging situation leading many young people to forgo homeownership altogether.”

To read the full report, including more data, charts, and methodology, click here.

The post Under-30s: Mortgages, Mortgage Debt & Mortgage Troubles  first appeared on The MortgagePoint.

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