Military experience and mortgage stress

This study investigates the relationship between military service and mortgage stress. Utilizing data from the Panel Study of Income Dynamics (PSID), our analysis reveals that veterans exhibit a higher likelihood of experiencing mortgage stress compared to non-veterans. We explore potential mechanisms underlying this association, finding evidence that mental health deterioration and unemployment may contribute to increased mortgage stress among veterans. Furthermore, our results indicate that the effect is attenuated for younger households and those with college education. This research contributes to the literature on the socioeconomic consequences of military service by elucidating the pathways through which military experience influences financial stability . Our findings have important implications for the development of targeted financial support programs and policies aimed at mitigating mortgage stress among veterans. • This study examines how military service affects veterans’ long-term finances. • Veterans are more likely to experience mortgage stress than non-veterans. • Mental health issues and job loss raise mortgage stress among veterans. • Effects are weaker for younger veterans and those with college education. • Targeted financial support is needed to help veterans manage mortgage stress.