How Mortgage Debt In Utah Compares To Other States

Salt Lake City UT

27 September, 2021

1:53 PM

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By Samuel Stebbins, 24/7 Wall St. - Salt Lake City 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. Utah has the sixth highest average mortgage debt in the Western United States, and the 11th highest nationwide. Among all state residents with a mortgage, the average debt stands at $258,635, about $29,400 higher than the national average. Home Values are higher than average in Utah, which means borrowers may be more likely to take on a greater debt load — but the higher costs are offset in part by higher than average incomes. The typical home in Utah is worth $330,300, about $89,800 more than the national median home value. But the typical household in the state earns $75,780 annually, compared to the national median household income of $65,712. 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.