LendingTree Study: Places Where Millennials Carry the Most Debt
CHARLOTTE, N.C., Sept. 10, 2018 /PRNewswire/ -- LendingTree®, the nation's leading online loan marketplace, today released its study on the places where millennials carry the most debt. The study found that student loans make up the biggest share of millennial debt, but auto loans are close behind. The study revealed that the typical urban millennial carries significant debt; the average debt balance for millennials living in the 50 biggest U.S. cities is $23,064.
LendingTree researchers analyzed anonymized credit report data of My LendingTree users who live in the 50 biggest metro areas in the U.S. Looking at debt balances (excluding mortgages) for those born between 1981 and 1996, they determined:
-- Where millennials have the biggest non-mortgage median debt obligations
-- The average breakdown of debt obligations by five different debt types:
student, auto, credit cards, personal loans and other
The results revealed a snapshot of millennials' debt balances, along with the major U.S. cities in which millennials are the most (and least) indebted.
Key findings:
-- Millennials in San Antonio, Pittsburgh, and Austin, Texas, shoulder the
largest debt burdens of the 50 biggest metros, with median non-mortgage
debts of $27,122, $26,403 and $26,164, respectively.
-- Three California cities -- San Jose, Sacramento and Los Angeles -- have
the lowest median balances on the list at $18,376, $18,691 and $19,299,
respectively.
-- Student debt makes up the largest share of millennial debt, accounting
for 40 percent of their total credit and loan balances. The proportion
of student debt was highest in Philadelphia, at 49.1 percent of the
average debt burden, and lowest in San Jose at 24.1 percent. This was
also the largest debt category for millennials in 35 of the 50 cities
reviewed.
-- Auto loan debt was the biggest debt burden of the other 15 metros and
averaged about 33 percent of millennials' average total debt balances.
Auto loans accounted for over 43 percent of the average debt for
millennials in Riverside, Calif., and San Antonio, but just over 22
percent of New York City millennials' debt.
The U.S. cities where millennials carry the most debt
In the top 10 cities, more than half of millennials have outstanding debts totaling $25,000 or more (not including mortgages), and roughly 1 in 4 millennials living in these cities owes more than $50,000.
Millennials in the South appear to be borrowing more -- eight of the top 10 cities are in this region, as defined by the U.S. Census Bureau. Texas, in particular, dominates the list of indebted millennials. San Antonio, Austin, Houston and Dallas are among the 10 cities where millennials owe the most.
The 10 Places Where Millennials Carry the Most Debt
(Excluding Mortgages)
---
Rank
Metro Median
Balance
--- ---
1
San Antonio $27,122
--- ---
2
Pittsburgh $26,403
--- ---
3
Austin, Texas $26,164
--- ---
4
Houston $25,978
--- ---
5
Jacksonville, Fla. $25,947
--- ---
6
Dallas $25,939
--- ---
7
Washington $25,810
--- ---
8
Virginia Beach, Va. $25,591
--- ---
9
Oklahoma City $25,351
--- ---
10
Columbus, Ohio $25,129
--- ---
Here are the five cities where millennials are taking on the most non-mortgage debt.
1. San Antonio
Median balance: $27,122
Millennials in this Texas city had the highest levels of debt in the nation, owing $4,058 more than the median debt balance for millennials across all 50 cities surveyed.
San Antonio's millennials also tend to owe the most on their cars, with that accounting for 43.2 percent of their total debt balances.
2. Pittsburgh
Median balance: $26,403
The millennial cohort in Pittsburgh has a higher portion of student debt, at 45.7 percent, meaning educational loans account for almost half of what they owe.
3. Austin
Median balance: $26,164
Next is the capital of Texas. Here, young adults have some of the highest amounts of credit card debt, accounting for 18.1 percent of their total outstanding debts.
4. Houston
Median balance: $25,978
Millennials in Houston, like others in Texas, tend to owe the most on their car loans. In this city, auto loans make up 42.5 percent of the total balances of millennials' outstanding debts.
5. Jacksonville, Fla.
Median balance: $25,947
The largest debts for Jacksonville millennials are their car loans, which are about on par with student debt. These two types of debt account for 38.5 percent and 37.1 percent of the totals millennials owe, respectively.
"The millennial generation makes up the younger portion of adults, and as they build their careers, families and communities, they're doing it encumbered by personal debt," said Kali McFadden, the LendingTree senior research analyst who led the study.
To view the full report, visit: https://www.lendingtree.com/finance/places-millennials-carry-the-most-debt/.
Breakdown of Millennial Debt
(Excluding Mortgages)
---
Metro Average Biggest Debt Category Student Debts Auto Credit Cards Personal Loans Other
Balance Loans Debts
--- ---
San Antonio $38,336
Auto 30.2% 43.2% 14.8% 9.4% 2.4%
---
Pittsburgh $38,372
Student 45.7% 28.6% 15.2% 9.2% 1.3%
---
Austin, Texas $36,454
Auto 35.4% 37.1% 18.1% 7.6% 1.8%
---
Houston $37,323
Auto 29.9% 42.5% 16.0% 9.5% 2.0%
---
Jacksonville, Fla. $37,236
Auto 37.1% 38.5% 15.1% 7.8% 1.6%
---
Dallas $36,775
Auto 33.3% 39.9% 16.0% 8.8% 1.9%
---
Washington $41,872
Student 46.9% 25.9% 17.0% 9.2% 1.0%
---
Virginia Beach,
Va. $36,323
Student 35.4% 32.1% 18.9% 11.9% 1.8%
---
Oklahoma City $35,980
Auto 37.1% 39.3% 13.4% 8.5% 1.6%
---
Columbus, Ohio $37,118
Student 48.1% 29.2% 14.6% 7.0% 1.1%
---
Birmingham, Ala. $36,776
Student 41.9% 35.0% 12.0% 9.5% 1.5%
---
Phoenix $36,281
Auto 35.0% 40.2% 14.8% 8.1% 1.9%
---
Buffalo, N.Y. $36,944
Student 46.4% 29.1% 15.9% 7.5% 1.0%
---
Atlanta $37,737
Student 46.1% 31.6% 14.0% 6.8% 1.6%
---
Kansas City, Mo. $35,369
Student 41.7% 34.1% 15.0% 7.8% 1.4%
---
Denver $35,376
Student 40.1% 31.4% 18.3% 9.0% 1.2%
---
Indianapolis $36,911
Student 44.2% 31.9% 14.3% 8.3% 1.4%
---
Charlotte, N.C. $36,626
Student 42.4% 32.7% 15.1% 8.4% 1.4%
---
St. Louis $34,941
Student 42.4% 33.4% 15.0% 8.1% 1.1%
---
Tampa, Fla. $36,122
Student 40.2% 35.0% 16.3% 7.0% 1.5%
---
Cincinnati $33,275
Student 40.2% 35.0% 14.8% 8.6% 1.4%
---
Nashville, Tenn. $36,478
Student 44.4% 31.1% 15.0% 7.3% 2.3%
---
Hartford, Conn. $35,110
Student 43.7% 25.5% 18.1% 11.5% 1.2%
---
Milwaukee $33,817
Student 48.1% 26.9% 15.9% 7.4% 1.8%
---
Las Vegas $35,045
Auto 31.0% 40.1% 18.2% 9.2% 1.4%
---
Baltimore $36,417
Student 42.0% 31.6% 16.5% 8.6% 1.3%
---
Boston $34,626
Student 46.3% 25.6% 18.6% 8.7% 0.9%
---
Philadelphia $36,773
Student 49.1% 24.8% 15.8% 8.9% 1.4%
---
Minneapolis $34,490
Student 47.5% 26.8% 14.9% 9.6% 1.2%
---
Chicago $34,832
Student 44.1% 28.6% 18.0% 8.4% 1.0%
---
Memphis, Tenn. $35,142
Student 45.3% 32.4% 12.4% 7.7% 2.3%
---
New Orleans $36,648
Student 44.9% 31.4% 14.8% 7.7% 1.2%
---
Richmond, Va. $33,666
Student 40.3% 33.8% 16.4% 8.4% 1.0%
---
Raleigh, N.C. $34,574
Student 47.8% 26.6% 14.7% 8.4% 2.6%
---
Cleveland $34,082
Student 46.5% 29.1% 15.8% 7.5% 1.2%
---
Orlando, Fla. $32,084
Student 39.2% 35.6% 16.4% 7.2% 1.5%
---
Riverside, Calif. $31,423
Auto 27.7% 43.5% 17.6% 9.7% 1.5%
---
Seattle $31,260
Auto 30.8% 37.4% 19.5% 10.7% 1.7%
---
Portland, Ore. $30,755
Student 40.9% 33.5% 17.3% 7.3% 1.1%
---
San Francisco $31,697
Student 34.7% 31.3% 21.9% 11.0% 1.1%
---
San Diego $31,470
Auto 31.2% 35.9% 21.6% 9.8% 1.5%
---
Miami $32,910
Student 40.7% 31.4% 18.6% 8.0% 1.4%
---
Louisville, Ky. $31,939
Student 43.9% 31.5% 14.4% 8.5% 1.8%
---
Providence, R.I. $30,094
Student 38.6% 30.8% 18.7% 11.0% 0.9%
---
Salt Lake City $31,174
Auto 31.2% 41.2% 17.7% 8.2% 1.7%
---
Detroit $33,052
Student 48.4% 25.2% 16.3% 8.9% 1.2%
---
New York $32,737
Student 44.6% 22.3% 21.6% 10.6% 0.9%
---
Los Angeles $30,111
Auto 33.5% 33.6% 21.1% 10.1% 1.8%
---
Sacramento, Calif. $29,160
Auto 31.6% 37.0% 19.2% 10.4% 1.8%
---
San Jose, Calif. $28,399
Auto 24.1% 37.7% 26.5% 10.4% 1.4%
---
Average $34,642 40.0% 32.9% 16.8% 8.8% 1.5%
---
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network, and notifies consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.greuling@lendingtree.com
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