Millennials carry significantly more mortgage debt than previous generations, with balances averaging nearly $125,000 higher than those held by Baby Boomers, according to data released this month.
The disparity in mortgage debt reflects broader economic trends impacting housing affordability and generational wealth accumulation. Even as Baby Boomers benefited from a period of robust economic growth and relatively stable housing prices, Millennials entered the market during and after the 2008 financial crisis and have faced increasing home prices coupled with stagnant wage growth.
Recent analysis of consumer credit data indicates that the median non-mortgage debt for Millennials currently stands at $27,251. However, this figure does not include mortgage balances, which represent a substantial portion of their overall debt obligations. A LendingTree study released in June 2025, analyzing over 500,000 credit reports, found the median non-mortgage debt across the 100 largest U.S. Metros to be $18,762, down from $24,668 the previous year. Gen Xers hold the highest median non-mortgage debt at $26,207, while Gen Z carries the lowest at $12,715.
The St. Louis Federal Reserve, in a May 2024 report, highlighted that both Gen Xers and Millennials hold more debt than Baby Boomers, though the reasons differ. The report noted that the sample sizes for the study were 545 baby boomers, 2,096 Gen Xers and 1,215 millennials, all examined at age 30 to ensure a comparable life-cycle stage.
The increasing debt burden among Millennials is not uniform across the country. Data from LendingTree shows significant regional variations, with the median balance in El Paso, Texas, for Millennials and Baby Boomers reaching $40,709. McAllen, Texas, also shows high median debt for these generations.
While overall debt levels have seen some decline, particularly among Baby Boomers who experienced a 45.3% year-over-year decrease in non-mortgage debt according to LendingTree, the long-term implications of higher mortgage debt for Millennials remain a concern. The Federal Reserve continues to monitor generational wealth data through the Survey of Consumer Finances, with the most recent data collected in 2019, prior to the economic disruptions caused by the COVID-19 pandemic.
