New data reveals a troubling surge in U.S. debt delinquencies, reaching levels not seen since 2017, as households and commercial real estate struggle under mounting financial pressure. Consumer debt has climbed to an all-time high of $18.8 trillion, driven by increases in mortgages, credit cards, auto loans, and student loans.
At the same time, office real estate delinquencies have hit a record high, signaling deepening distress in the commercial property market. The situation highlights a growing economic divide, with lower-income and younger borrowers facing the greatest strain amid rising unemployment and the ongoing impact of AI disruption on jobs.
Key Points Highlighted:
📈 Total U.S. household debt rose to a record $18.8 trillion—up $4.6 trillion since 2019.
⚠️ Overall delinquency rates climbed to 4.8%, the highest since 2017, with significant stress among low-income and young borrowers.
💳 Credit card balances surged to $1.28 trillion, while student loan delinquencies spiked sharply after the end of repayment moratoriums.
🏢 Office sector CMBS delinquencies hit a record 12.34%, reflecting a severe downturn in commercial real estate.
👥 Economic inequality is widening—delinquencies are concentrated in lower-income zip codes and among younger workers facing higher unemployment.
🤖 AI disruption is cited as a growing risk, potentially leading to higher unemployment and further debt stress in coming years.
📉 Beyond the headlines, if "performing matured balloon" loans are included, the true commercial delinquency rate rises to 9.14%, indicating deeper maturity-related stress.
