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June 2024 ยป thefivestar.com 71 June 2024 J O U R N A L smallest share of the mortgage pie in prominent Florida retirement resorts, where populations are typically older: West Palm Beach issued 27.8% of new mortgages to those under 35 last year, the least share of any metro in this survey, followed by Fort Lauderdale (28.8%). Anaheim, California (31.7%), is followed by Orlando (32%) and Las Vegas (32.9%). The scenario is much different for older millennials, who took out the ma- jority of mortgages in the Bay Area. In San Francisco, 37.8% of new mortgages issued last year went to people aged 35 to 44, the highest share of any metro in this analysis, followed closely by Oakland (37.2%) and San Jose (37.1%). Next are Newark, New Jersey (34.5%), and Los Angeles (34.5%). One reason older millennials are more likely to take out mortgages in the Bay Area than in other parts of the country is that it is extremely costly, with many people purchasing their first house in their late thirties and early forties. People of all generations bought much fewer homes in 2023 than the pre- vious year, as rising housing prices and mortgage rates reduced buyers' budgets; 2023 was the least cheap year on record. However, historically low inventory has also hampered sales. JUST HOW BAD IS AMERICAN HOUSEHOLD DEBT? D espite a well-documented rise in consumer debt and loan delinquencies, few Americans are optimistic about their current financial status. Many people blame mounting debt and the inability to live within their means, according to a new analysis from Achieve. "Every month, Achieve teammates support thousands of consumers who are struggling with debt and looking for help to get back on track," said Andrew Housser, Achieve Co-Founder and Co- CEO. "We know that household debt and credit are growing at an alarming pace. Skipping payments on financial obliga- tions in order to afford essentials is the type of decision driving more everyday people deeper into debt. This research highlights the choices that many con- sumers have to make month after month to simply stay afloat." The Achieve Center for Consum- er Insights polled an estimated 2,000 people with active accounts in six types of consumer debt: credit cards, mortgag- es and home equity lines of credit, cars, and student loans. The survey style and respondent panel are intended to supple- ment the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit by providing qualitative information about consumer borrowing patterns. To further investigate the caus- es and consequences of escalating loan delinquencies, the survey panel includes a sample of borrowers who were 30 days or more past due at least once in the previous six months. High Prices, Low Wages Forcing Tough Choices Upon Consumers Consumers who fell behind on payments on any account in the previous six months cited a variety of reasons, including the impact of inflation on basic expenses (21%), a decrease in work and income (20%), and forgetting to pay (11%). Furthermore, customers with a recent credit card delinquency reported trouble paying owing to interest rate hikes (6%), while delinquent auto loan borrowers reported problems managing cash flow between when they received income and when their payments were due (7%). In student loans, 6% of delinquent bor- rowers indicated they missed a payment because they didn't want to. So, why are consumers struggling to pay their bills on time? Almost one-third of customers (31%) said it is extremely difficult or difficult for them to pay their recurrent obligations on schedule. Among these respondents, 65% stated it boils down to not having enough money to cover their expenses. Other issues include owing money on too many separate accounts (39%), cash flow timing variations between when income is received and debt payments are due (27%), and trouble keeping track of how much is owed across all accounts (14%). "For many consumers, money is go- ing out the door as quickly as it's coming in, if not faster," Housser said. When trying to make ends meet, con- sumers frequently have to make difficult decisions. Over the last three months, 25% of poll respondents indicated they had cut back on essential necessities; 18% have taken on new credit card debt; and 11% have skipped payments on one or more of their obligations. From Delinquency to Spiraling Debt According to Achieve's research,