Rising Mortgage Costs Push Millions Paycheck to Paycheck in US

In 2025, many American households face financial instability due to rising household debt and increasing housing costs. The New York Federal Reserve reports household debt climbed to $18.4 trillion, with elevated delinquency rates, especially in student loans, while nearly half of Americans struggle to manage credit card debt. Younger generations, including millennials and Gen Zers, grapple with balancing social spending and saving for homeownership amid high interest rates, inflation, and mounting student loan debt, contributing to delayed first-time homebuying. Housing market volatility particularly impacts higher-priced homes as mortgage rate fluctuations affect borrowing capacity. The growing reliance on adjustable-rate mortgages is pushing over 24 million homeowners into paycheck-to-paycheck living, turning homeownership from a symbol of stability into a major financial burden. Additionally, families facing housing insecurity encounter back-to-school expenses that may strain limited budgets and increase the need for emergency housing support.