Senior housing wealth holds firm even as mortgage strain intensifies nationwide

Senior housing wealth showed only a marginal decline at the end of 2025, even as broader mortgage affordability challenges continued to squeeze US households, particularly younger borrowers.

New data from the National Reverse Mortgage Lenders Association and RiskSpan reveals that total housing wealth among Americans aged 62 and older edged down 0.83% in the fourth quarter to $14.62 trillion. The slight pullback was largely attributed to an estimated $100 billion drop in home values, though rising mortgage balances (up roughly $21.8 billion) partially offset the decline.

The findings point to a cooling housing market following price highs earlier in 2025, but the overall equity position of older homeowners remains resilient.

“While we saw a modest dip in housing wealth at the end of 2025, the overall level of home equity among older Americans remains historically strong,” said Steve Irwin, President of NRMLA. “For many retirees, housing wealth continues to be a critical component of financial security and retirement planning. Even in a moderating market, reverse mortgages remain a valuable tool to help seniors access that equity and meet their evolving financial needs.”

Affordability pressures

In contrast, a separate analysis from LendingTree highlights ongoing affordability pressures across the broader housing market.

According to LendingTree, the average monthly mortgage payment dipped 2.4% in 2025 to $1,942, down from $1,990. However, the modest decline has done little to ease the financial burden for many borrowers.

On average, homeowners are spending 20% of their income on mortgage payments, while 24% exceed the 30% threshold widely used to signal affordability stress. Meanwhile, about 1 in 10 borrowers allocate at least 40% of their income to housing costs.

Younger buyers are feeling the strain most acutely. Gen Z homeowners spend 25% of their income on mortgages on average, compared to 20% for millennials and 18% for Gen X. Nearly one-third—32%—of Gen Z borrowers exceed the 30% benchmark.

“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,” said Matt Schulz, Chief Consumer Finance Analyst at LendingTree.

Regional variations

Regional disparities further illustrate the divide. California metros continue to post the highest monthly payments, with San Jose ($4,016) and San Francisco ($3,850) leading the way. At the same time, 26 of the 100 largest metros recorded increases in mortgage payments, including Akron, Toledo, and Augusta.

In several high-cost markets, affordability pressures are even more pronounced. More than a quarter of borrowers in Oxnard and San Diego spend at least 40% of their income on mortgage payments, with Los Angeles also among the highest.

Taken together, the data underscores a widening gap: older homeowners are largely insulated by strong, accumulated housing equity, while younger and newer buyers continue to grapple with persistent affordability challenges—even as the pace of home price growth begins to moderate.