How Mortgage Debt In North Carolina Compares To Other States

Raleigh NC

27 September, 2021

11:34 AM

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By Samuel Stebbins, 24/7 Wall St. Raleigh 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. About half of all states have an average mortgage debt below $190,000, and North Carolina is among them, with an average mortgage debt of $188,520. The median home value in North Carolina is also lower than average, at $193,200 — about $47,300 below the national median. North Carolina residents are about as likely as the typical American to own their home. The state's homeownership rate of 65.3% is closely in line with 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.