Contrary to what one might expect, income — rather than age — predicts whether consumers have or are interested in obtaining a mortgage. While common wisdom suggests older consumers are more likely to have one, new PYMNTS Intelligence data shows that high-income individuals are more than three times as likely to have a mortgage as lower-income consumers.
Among those without mortgages, younger, high-income earners stand out as the only group with growing interest in obtaining new mortgages. Interest across all other groups is down. These trends underscore widening disparities in access to housing and financial stability.
These are just some of the findings detailed in “Interest in Mortgages Rises Among Younger, High-Income Individuals,” a PYMNTS Intelligence exclusive report. This edition examines the differences between the mortgage haves and have-nots. It draws on insights from a survey of 2,093 United States consumers conducted from Oct. 3 to Oct. 18.
Income is a far stronger predictor than age of whether consumers have mortgages.
As of October, 44% of high-income consumers — those earning more than $100,000 annually — report having an active mortgage. In contrast, only 14% of lower-income consumers — those with annual incomes of less than $50,000 — say the same. In other words, high-income consumers are more than three times as likely as their lower-income counterparts to have mortgages.
Among high earners, there is not much difference between the share of older and younger consumers with a mortgage. We find that 47% of older, high-income consumers — baby boomers and seniors and members of Generation X — have a mortgage. An only slightly lower 41% of younger, high-income consumers —millennials and members of Generation Z — reported the same.
Among lower-income consumers, however, the generational disparities are more pronounced. While 17% of older, lower-income consumers have an active mortgage, only 8.8% of younger individuals in this group report the same.
The higher rates of high-income consumers with active mortgages are likely due to a number of related factors. High-income consumers may have greater savings, enabling them to afford a down payment. They could also perhaps be more financially savvy.
High-income consumers are 64% more likely than the average consumer to express interest in obtaining mortgages.
Among consumers without mortgages, high-income individuals express the most interest in obtaining one.
Eighteen percent of consumers earning more than $100,000 a year who don’t currently have mortgages report interest in getting one. This share is 64% higher than the population-wide average of 11%.
Furthermore, these high-income consumers are the only ones whose interest in obtaining mortgages has increased since the spring. Between April and October, the share of high-income consumers without a mortgage who are interested in getting one increased from 13% to 18%. In other words, high-income consumers were 35% more likely to express interest in a mortgage in October compared to April.
Among consumers in other income brackets, the share reporting such interest has dipped slightly between April and October. Among lower-income consumers, interest in obtaining a mortgage stands at 6.1%. This represents a 15% decrease in the six-month period. Among middle-income earners — those earning between $50,000 and $100,000 annually — the share interested in obtaining a mortgage is 11%. This represents an 18% decrease.
Despite economic uncertainties, high-income consumers’ growing interest in obtaining mortgages suggests resilient confidence in their financial stability. This sets them apart from lower-earning consumers, who are pulling back, likely constrained by affordability concerns and economic pressures. These demographic differences signal potential opportunities for lenders focused on affluent borrowers while highlighting widening disparities in the housing market.
Only younger, high-income consumers show growing interest in getting mortgages.
PYMNTS Intelligence data shows that high-earning millennial and Gen Z consumers are, in fact, the only segments with growing interest in getting new mortgages. As of October, 31% of these younger, high-income consumers expressed interest in obtaining a mortgage. This share is up more than 50% compared to April. In the same period, the share of older, high-income consumers showing interest decreased slightly from 7.6% to 7%.
Meanwhile, interest in obtaining new mortgages among younger consumers in other income brackets has declined somewhat. For millennial and Gen Z consumers making less than $50,000, interest dipped 15% in that six-month timespan. Among younger, middle-income consumers, there was a slightly more pronounced decline. The share expressing interest in obtaining a new mortgage dropped 21%. Among older, lower- and middle-income consumers, interest in getting a mortgage decreased 19% and 7.8%, respectively.
It may be that younger, high-income consumers are best positioned to take advantage of the Federal Reserve’s interest rate cuts. For example, they may have the funds necessary to put a down payment on a house. Additionally, younger, high-income consumers may be more interested in purchasing properties as long-term investments. After all, these consumers have a long timeline to see their assets’ values appreciate.
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Methodology
“Consumer Credit Economy: Which Consumers Are Getting Mortgages?,” a PYMNTS Intelligence exclusive report, is based on a survey of 2,093 U.S. consumers conducted from Oct. 3 to Oct. 18. The report examines how demographic factors correlate with having an active mortgage and interest in obtaining one. Our sample was census-balanced to match the U.S. population, with 51% of respondents identifying as female. The average respondent’s age was 48, and 38% annually earn more than $100,000.
