#CryptoRegulation US household debt hits all-time high at $18.2 trillion after a $167 billion surge in Q1

US household debt ballooned by $167 billion in the first quarter of 2025, bringing the total to a record $18.2 trillion, according to the New York Federal Reserve’s latest report.

Compared to ten years ago, the overall debt held by households has grown by $7 trillion, piling onto families who are already stretched thin. This quarter’s sharp rise came mostly from mortgage debt, which spiked by $199 billion, pushing it to a staggering $12.8 trillion.

At the same time, student loan balances increased by $16 billion, hitting $1.6 trillion, another record high. Not everything went up, though. Auto loan debt dropped $13 billion, now at $1.6 trillion, and credit card balances fell $29 billion, down to $1.2 trillion. Still, the total load is heavier than it’s ever been, and it’s clear more people are locked into long-term debt with no easy exit.

Mortgage pressure rises as affordable housing stays out of reach

The current housing disaster started in the early pandemic years. Mortgage rates hit historic lows, and that sent buyers racing to lock down properties. That scramble didn’t let up. With demand so high and supply so low, prices climbed fast.

By March this year, home prices across the country were 39% higher than they were in March 2019, based on the S&P CoreLogic Case-Shiller Index.

Even now, prices are still rising. And though more homes are finally hitting the market, the supply is growing in the wrong places, mostly in higher price brackets. Meanwhile, homes in the lower and middle ranges, the ones most people actually need, are still hard to find. That has left home sales in those price tiers lagging while expensive listings keep moving.

A detailed report by the National Association of Realtors and Realtor.com tried to make sense of who can actually afford what. They focused on buyers using a standard 30-year fixed mortgage and calculated what listings would be affordable if no more than 30% of income went to the mortgage, taxes, and