32% of Gen Z Buyers Spend 30%+ of Income on Mortgages [LendingTree Report]
Housing costs take up a major share of household budgets, leaving many Americans stretched after covering essentials.
There’s modest relief: the average new mortgage payment fell 2.4% to $1,942 in 2025 from $1,990—but affordability pressures remain. Our latest analysis breaks down where payments are rising or falling and which metros put the most strain on buyers.
- Borrowers are spending 20% of their income on average, but 24% spend at least 30%—a key indicator of affordability stress.
- Gen Z carries the highest burden, spending 25% of income on mortgages vs. 20% for millennials and 18% for Gen X. 32% of Gen Zers spend 30% or more of their monthly income on mortgage payments.
- California has the highest new mortgage payments: San Jose ($4,016), San Francisco ($3,850), Oxnard ($3,401), Los Angeles ($3,366), and San Diego ($3,225).
- Despite a national decline, 26 of the 100 largest metros saw increases, led by Akron, Ohio (10.7%), Toledo, Ohio (9.7%), and Augusta, Ga. (8.9%).
- 1 in 10 borrowers are heavily cost-burdened, with 10% spending at least 40% of income on new mortgage payments. That share jumps to 27% in Oxnard, 26% in San Diego, and 25% in Los Angeles, with Provo and Salt Lake City (both 21%) also among the highest.
You can check out the full report here: https://www.lendingtree.com/home/mortgage/national-average-monthly-mortgage-payment-and-loan-affordability-in-each-state-ranked/
LendingTree’s Chief Consumer Finance Analyst, Matt Schulz, had this to say:
“Even with a small dip in monthly payments, affordability hasn’t meaningfully improved. When a quarter of borrowers are still crossing that 30% threshold, it’s a sign that incomes haven’t kept pace with housing costs. For many buyers, especially younger ones, there’s just less room for error in their budgets. That can make homeownership feel more fragile than it looks on paper.”
