The COVID-19 pandemic has fueled an increase in demand among homebuyers who only now starts at show to signns of slowing down. This historic demand has coincided with low borrowing costs, a limited housing stock and labor and material bottlenecks that have hampered new construction. These factors have pushed home values ââto all-time highs, forcing many buyers to take out mortgages that put them in heavy debt.
According to a recent report from Experian, a consumer credit reporting company, US homeowners with mortgages had an average outstanding balance of $ 229,242 in 2020. Mortgage debt can be affected by several regional factors and, hence, the amount of debt. reimburse varies widely from state to state.
Using data from Experian Credit Report 2020, 24/7 Wall St. identified the states with the highest average mortgage debt. States are ranked according to the average debt of homeowners with a mortgage.
All other things being equal, average mortgage debt is affected the most by real estate values. Overwhelmingly, in states where the median home value is below the national median of $ 240,500, the average mortgage debt is also below the national average. Likewise, in states where home values ââare above the national median, mortgage debt also tends to be above average. Here’s a look at the states where people struggle with the most debt..
High real estate values ââalso increase the likelihood that homebuyers will need to take out a mortgage in the first place. In nine of the 10 states with the highest median home value, the share of homeowners with a mortgage exceeds the share of 61.7% nationally. Here’s a look at the average cost of a home in each state..
Depending on the state, the average debt ranges from as little as $ 128,000 to almost $ 400,000.
Click here to see the states with the most mortgage debt
Click here to read our detailed methodology