How Mortgage Debt In California Compares To Other States

San Diego CA

27 September, 2021

11:55 AM

Description

By Samuel Stebbins, 24/7 Wall St. San Diego 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 typical home in California is worth $568,500, over $300,000 more than the national median home value. As is often the case in areas with high home values, mortgage debt is also high in California. At $396,229, average mortgage debt in California is the highest in the country. High home values also likely contribute to higher than average borrowing rates and lower than average homeownership rates. An estimated 69.0% of homeowners in California have a mortgage, compared to just 61.7% of homeowners nationwide, while the state's homeownership rate of 54.9% is the second lowest of any state and well below 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.