Mortgage Payments Nearly Double for Young Homebuyers since 2018

This chart illustrates a dramatic shift in housing affordability for homebuyers under the age of 25 between 2018 and 2024.

This increase from the low point is not attributable to a single factor. In addition to high interest rates, this cohort also faced a surge in home prices. Younger buyers were not only financing their homes at higher rates but were also taking on significantly larger loan balances than their peers just a few years earlier. This combination created a rapid deterioration in affordability, effectively doubling the monthly housing cost for new, young homeowners in just four years.

How Lenders and Stakeholders Can Use This Insight

This trend has direct implications for strategic planning across the mortgage industry.

Product Development & Origination. The traditional 30YR FRM is becoming less attainable for this key demographic. This analysis validates the need for lenders to design and market innovative loan products.

Loan Servicing. Borrowers represented in the 2022-2024 data may be more susceptible to payment stress. Servicers should anticipate a greater need for high-touch customer service and proactive loss mitigation outreach for this cohort, particularly as introductory buydown periods expire.