It’s said that you shouldn’t take on a mortgage payment that spends more than around 28 percent of your monthly income. Anything above that is considered unaffordable – or, at least, financially taxing. But finding an affordable house in today’s market can be challenging, and particularly if you’re a younger buyer. In fact, a new analysis looked at mortgage payments broken down by generation and found that Gen Z was the generation most likely to spend more than 30 percent of their income on their mortgage. That’s mostly due to the fact that younger homeowners typically have less income than their older counterparts. They’re also more likely to have purchased their home more recently, when prices and mortgage rates were elevated. Gen X, on the other hand, was the generation that spent the smallest share of its income, with just 18 percent of its monthly money going toward its mortgage. (source)
