Aug 15, 2019 15:35 ET
Millennials are on pace to hold larger average mortgage debt
than any other age demographic, according to a new report from Experian.
company revealed that millennials held an average mortgage balance of $222,211 during the first quarter of this year. That’s a 5% increase from the $210,923 average balance in first-quarter 2018 — and more than twice the annual debt increase of Gen Xers (2%), baby boomers (0%) or the Silent Generation (1%).
Part of that increase is innate, since homeowners pay off their
mortgage debt as they age. Borrowers of prime homebuying age should, in theory,
carry larger balances while older homeowners should retain smaller ones. And as
more millennials age into a homebuying window as the solid U.S. economy encourages
more borrowers to take on larger loans, it makes sense that millennials —
already the largest demographic in the market by loan share and dollar value —
are seeing their balances rise.
The Silent Generation had an average mortgage balance of
$131,658 in the first quarter of this year, while baby boomers averaged $175,743. Gen Xers continued to carry the largest average balances at $237,753. Nationwide, the average mortgage debt in the past first quarter was $202,284, per Experian.
Breaking the data down by metro area, millennials in Washington, D.C., carried an
average mortgage balance of $450,985 in the first quarter, more than double the
national average and higher than the city’s average of $416,848 across all
age groups. Among all states, millennials in Hawaii carried the highest average
balance at $408,167. Millennials in Puerto Rico and West Virginia carried the
lowest average balances at $121,059 and $138,554, respectively.