What brokers need to know about how young buyers differ from generations past
While politicians continue wringing their hands and throwing things at the wall in an effort to address housing affordability challenges, younger borrowers are already thinking two steps ahead.
Since it doesn’t seem as if the government is going to help with the issue anytime soon, those looking for their first house are having to assess not just the impact of a mortgage payment, but also other expenses on their budgets.
According to the latest data collected by JD Power, young borrowers are concerned about how these large house payments will affect their way of life.
Bruce Gehrke (pictured top), senior director of wealth and lending intelligence at JD Power, said borrowers don’t believe the process is as easy as it used to be, largely due to the current market headwinds.
“You have the affordability challenges, you have the restricted supply out there, multiple offers, bidding wars, and things of that nature,” Gehrke told Mortgage Professional America. “Consumers have this perception going in that this wasn't as simple as it was once before, where you just kind of walk in, find the house you want, put down an offer, go back and forth, and you're ready to close.”
More complications
Buyers in the survey don’t perceive the mortgage process as easy as it once was, and they’re approaching a broker or originator with many more questions about how their finances will be affected.
“Now you have this perception that there are more complications involved,” Gehrke said. “I want to know more about the affordability issues. What can I afford? Not just what will I qualify for, but what fits into my lifestyle? And we see differences across demographics, especially among younger borrowers. They're not as willing, in some cases, to spend as much on housing relative to their income.”
Gehrke believes the younger generation of buyers has more places where their expendable income is going, compared to previous generations who might tighten discretionary spending in order to afford a home payment.
“So they're spending more money on other things, whether it's streaming services, whether it's Starbucks,” he said. “Where traditionally you go back a couple of generations, and people were eating peanut butter and jelly sandwiches for two years to afford a home, because that was a priority for them.”
Buyers want to know not only how a new mortgage payment fits into the budget, but also how the total costs of owning a home will affect them. Gehrke is seeing buyers showing regret because the actual financial impact of homeownership on the family budget may be more than they bargained for.
“Borrowers will say, ‘I want to have an understanding of this before I get down the line,’” Gehrke said. “Because one of the major points of regret that we see in first-time buyers is, ‘I didn't have a clear picture of all the costs involved in owning a home, and this is a lot more than I signed up for.’
“I think what you're seeing now is folks trying to nail that down before they go out there, so that they're looking in the price range and cost structure that they're comfortable with. It's not just ‘Get me prequalified,’ but ‘I could get that house, but I'm not comfortable living that way. I'd rather be in this price range, because it fits my lifestyle.’”
Advice for brokers
One encouraging aspect of this information is that it gives brokers a chance to leverage one of their biggest advantages: building one-on-one relationships with homebuyers. This allows the broker to craft a plan for all buyers, especially younger ones, that best fits their plans.
“From a broker perspective, I think they need to continue to focus on where their competitive advantage has always been,” he said. “I think that's more local, that's more personal, face-to-face with the borrower. I think that's still an advantage that they have.”
Michael Brennan, President of Nationwide Mortgage Bankers, urges originators to help homeowners leverage equity and manage consumer debt through proactive reviews and strike rate alerts.https://t.co/Htsu4BGceB
— Mortgage Professional America Magazine (@MPAMagazineUS) November 23, 2025
Gehrke also sees value in brokers partnering with bigger companies, like Rocket Pro and UWM, which can provide not only the technological backing that a smaller brokerage wouldn’t be able to afford on its own. They can also provide a funnel for leads, helping even the smallest brokers stay busy.
“I think that the key part for them is to find partners to work with, like lending partners to work with that can give them other advantages,” Gehrke said. “That's key to working with somebody like Rocket, the same thing with UWM, all those things that they're working to provide to that broker community.
“If brokers don't have the kind of budget to create these technological improvements and benefits, they need a partner to do that. I think brokers can equally compete if they have the right partnerships and if they're focused on their competitive advantage, which is that personal relationship.”
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