How Mortgage Debt In Michigan Compares To Other States

Grand Rapids MI

27 September, 2021

3:15 PM

Description

By Samuel Stebbins, 24/7 Wall St. - Grand Rapids 2021-09-27 The COVID-19 pandemic fueled a surge in demand among homebuyers that is only now beginning to show signs of slowing. This historic demand coincided with low borrowing costs, limited housing inventory, and labor and materials bottlenecks that have been hampering new construction. These factors have pushed home values to all time highs, forcing many buyers to take on mortgages that put them deep in debt. According to a recent report from Experian, a consumer credit reporting company, American homeowners with a mortgage had an average unpaid balance of $229,242 in 2020. Mortgage debt can be impacted by multiple regional factors, and as a result, the amount of debt American homeowners are paying down varies considerably by state. The average homeowner with a mortgage in Michigan has $150,482 in outstanding mortgage liabilities — the ninth lowest amount of any state. The relatively low mortgage debt is likely partially the result of the state's affordable housing market. The typical home in Michigan is worth $169,600, only 2.8 times more than the state's median household income of $59,584. Meanwhile, the affordability ratio nationwide is far higher, at 3.7-to-1. Affordable housing also likely explains the widespread homeownership in the state. Michigan's homeownership rate of 71.6% is fifth highest among states and well above the 64.1% national rate. All mortgage debt data used in this story from the 2020 State of Credit Report by Experian, a consumer reporting agency. Average mortgage debt is a measure of the average first mortgage balance per consumer who had an open first mortgage account. Figures for median home value, median household income, homeownership rates, and the share of owner-occupied households with a mortgage came from the U.S. Census Bureau's 2019 American Community Survey.     Can't see the article's infographic? Click here to view the original story.This story was originally published by 24/7 Wall St., a news organization that produces real-time business commentary and data-driven reporting for state and local markets across the country.