Young homeowners are spending more of their income on mortgages than any other generation

One-third of new Gen Z borrowers spend 30% or more of their income on principal and interest payments. This is higher than the 21.7% of millennials and 20.1% of Gen Xers who do the same. Mortgage rates are currently above 6%. More than 70% of homebuyers in the last two years went over budget when purchasing a home, with 22% spending $50,000 to $79,999 over budget and 10% spending $80,000 or more. Almost 30% of these buyers increased their down payments and took on larger mortgages at higher interest rates. Half of Gen Z homeowners and 44% of millennial homeowners were at risk of missing at least one mortgage payment over the last two years. 14% of Gen Z and 15% of millennials were at risk of missing between six and ten payments during that period.