What percentage of Americans own a home with no mortgage?
The share of US homes that are mortgage-free jumped 5 percentage points from 2012 to 2022, to a record just shy of 40%. More than half of these owners have reached retirement age.
40% of Americans Pay Off Their House — Are They Doing Better Financially? For most Americans, a home mortgage is the biggest financial obligation they will ever have. A traditional mortgage spans 30 years and is often in the hundreds of thousands of dollars, so the interest charges can be enormous.
Latest mortgage statistics in 2024. Americans owe $12.14 trillion on 84.0 million mortgages. That comes to an average of $144,593 per person with a mortgage on their credit report. Mortgages represent 70.2% of consumer debt in the U.S.
Stats from 538.com, for example, suggest the age is around 63. As each homeowner is unique, though, this type of information should only be used anecdotally. You should always stick with the financial plan that is tailored to your own objectives and personal situation.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more. The exact definition of debt free can vary, though, depending on whom you ask.
| State | Rate of Own Home Ownership | |
|---|---|---|
| 1 | California | 18.35% |
| 2 | Hawaii | 19.36% |
| 3 | New York | 20.52% |
| 4 | Alaska | 23.36% |
In the U.S., the free-and-clear homeownership rate was 23%. If free-and-clear homeownership is the American Dream, then apparently Lithuania and many other countries are living the American Dream.
| Debt type | Average balance (2023, Q3) | Total Balance (2023, Q4) |
|---|---|---|
| Mortgage debt (Excluding HELOCs) | $244,498 | $12.25 trillion |
| HELOCs | $42,139 | $360 billion |
| Auto loan | $23,792 | $1.61 trillion |
| Credit card debt | $6,501 | $1.13 trillion |
| Family income | % carrying a balance (among cardholders) |
|---|---|
| Source: Report on the Economic Well-Being of U.S. Households in 2022 — May 2023 | |
| Less than $25,000 | 56% |
| $25,000 to $49,999 | 57% |
| $50,0000 to $99,999 | 53% |
What state has the most homeowners?
However, Washington, D.C. has the lowest rate of homeownership of all U.S. states and territories at just 41%. What state has the highest rate of homeownership? The state with the highest rate of homeownership is West Virginia with 74.5%.
In 2022, the average age of first-time homebuyers was 36, according to the National Association of Realtors (NAR). This is up from 33 in 2021. A more notable stat, however, is that only 26% of homebuyers in 2022 were first-time homebuyers — the lowest percentage since the NAR started tracking the metric.
Most have paid off their mortgages. In 2020, 58% of the state's equity millionaires owned their homes free and clear. Statewide, there has been a dramatic rise in the number of Californians who have paid off their mortgages, from 1.6 million households in 2000 to 2.4 million in 2020.
“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
“A life free from mortgage payments is psychologically liberating, but a well-funded retirement is essential for long-term financial security and peace of mind.”
What is the average credit score? The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.
What percentage of America is debt-free? According to that same Experian study, less than 25% of American households are debt-free. This figure may be small for a variety of reasons, particularly because of the high number of home mortgages and auto loans many Americans have.
Credit card debt in America by the numbers
That represents a 4.6% increase in a single quarter, with cardholders shouldering thirteen-figure debt at $1.03 trillion for the first time. In short, that amounts to an average balance of $5,733 per cardholder.
The national homeownership rate is 66%, which means that 66% of households own their home while 34% rent. This rate has held steady over the past year.
In fact, the average person will own at least three houses in their lifetime. Living in one place for most of your life may or may not be your goal, but if it is, there are things you must do as a homeowner to ensure your home lasts as long as you'd like it to.
What is average home price in USA?
The average home price in the United States was $495,100 in the second quarter of 2023, according to the Census Bureau and Department of Housing and Urban Development. By comparison, the median U.S. home price in June 2023 was $426,056, according to Redfin.
Here's how many Americans are homeowners
According to the Federal Reserve, the homeownership rate in 2022 was 66.1%, up slightly from 64.9% in 2021.
77% of people in the US live in houses (detached, attached, or mobile homes), 20% live in apartments, and 3% live in other dwellings, such as group quarters, vans, RVs, and boats. Q: Do many Americans live in apartments or do they have houses like on TV shows?
In 2022, the rate of home ownership among White people living in the United States was 74.4 percent.
Gen X has the highest average debt balance in all categories, except for personal loans. Here's the breakdown: Credit cards: Gen X have the highest credit card balance compared to other age groups, at $8,215. Auto loans: Gen X have the highest auto loan balance, at $21,570.
References
- https://www.quora.com/What-percentage-of-the-American-population-lives-apartments-and-what-percent-in-houses
- https://www.trepp.com/trepptalk/cmbs-delinquency-rate-inches-up-in-february-driven-by-office
- https://www.experian.com/blogs/ask-experian/can-i-refinance-if-behind-on-mortgage-payments/
- https://www.axios.com/2023/12/12/mortgage-free-homes
- https://www.equifax.com/personal/education/debt-management/articles/-/learn/pay-bills-to-catch-up-when-behind/
- https://www.pscu.com/insights/blogs/pscu-payments-index-february-2024-credit-card-delinquency-rates-escalating-to-above-pre-pandemic-levels
- https://www.cbsnews.com/news/how-long-will-it-take-to-pay-off-5000-in-credit-card-debt/
- https://www.bankrate.com/personal-finance/credit/goodwill-letters-get-late-payments-removed-credit-report/
- https://www.thezebra.com/resources/home/average-age-of-first-time-homebuyers/
- https://www.investopedia.com/how-to-pay-your-bills-when-you-lose-your-job-4801711
- https://www.housingwire.com/articles/mortgage-delinquencies-increase-for-second-straight-quarter-mba/
- https://www.consumerfinance.gov/about-us/newsroom/cfpb-bans-excessive-credit-card-late-fees-lowers-typical-fee-from-32-to-8/
- https://www.statista.com/statistics/205959/us-mortage-delinquency-rates-since-1990/
- https://www.fdic.gov/consumers/consumer/moneysmart/podcast/documents/borrowing-money-how-much-mortgage-can-i-afford.pdf
- https://www.firstrepublic.com/insights-education/average-american-debt
- https://www.nolo.com/legal-encyclopedia/if-car-repossessed-i-pay-off-the-entire-loan-balance-back.html
- https://abcnews.go.com/US/americans-credit-card-debt-hits-record-113-trillion/story?id=106990807
- https://www.sofi.com/learn/content/average-mortgage-term-length/
- https://www.investopedia.com/ask/answers/081516/how-many-mortgage-payments-can-i-miss-foreclosure.asp
- https://www.thecut.com/article/what-if-i-never-pay-my-credit-card-bill.html
- https://www.consumerfinance.gov/ask-cfpb/what-is-mortgage-forbearance-en-289/
- https://lo.primelending.com/pclick/calculators/paying-extra-towards-mortgage
- https://www.foxbusiness.com/economy/credit-card-delinquency-rates-hit-worst-level-record
- https://www.nationwide.com/lc/resources/home/articles/pay-off-mortgage-faster
- https://fortune.com/recommends/credit-cards/average-credit-card-debt/
- https://www.cbsnews.com/news/credit-card-debt-record-high/
- https://www.cnn.com/cnn-underscored/money/average-student-loan-debt
- https://www.bankrate.com/personal-finance/credit/when-does-old-debt-fall-off-credit-report/
- https://upsolve.org/learn/california-repossession-laws/
- https://www.newyorkfed.org/newsevents/news/research/2024/20240206
- https://www.forbes.com/advisor/mortgages/what-is-pre-foreclosure/
- https://www.rocketmortgage.com/learn/additional-principal-payment
- https://www.doorloop.com/blog/renter-and-homeowner-statistics
- https://www.quickenloans.com/learn/grace-period
- https://www.stessa.com/blog/states-with-highest-percent-people-behind-on-mortgages/
- https://www.autocreditexpress.com/blog/what-happens-if-the-repo-company-can-t-find-my-car/
- https://www.rocketmortgage.com/learn/mortgage-default
- https://osbornehomes.com/california-foreclosure-process-and-timeline/
- https://www.autotrader.com/car-tips/car-repossession-how-many-missed-payments
- https://www.cbsnews.com/news/help-paying-mortgage-rent-homeowners-renters/
- https://www.businessinsider.com/personal-finance/average-american-debt
- https://www.nolo.com/legal-encyclopedia/why-you-should-avoid-foreclosure-bailout-loans.html
- https://www.forbes.com/sites/johnwake/2023/03/31/us-has-3rd-lowest-percentage-of-households-that-own-their-homes-without-mortgages/
- https://www.cnbc.com/2024/02/06/credit-card-delinquencies-surged-in-2023-indicating-financial-stress-new-york-fed-says.html
- https://www.capitalone.com/learn-grow/money-management/average-credit-card-debt-in-america/
- https://upsolve.org/learn/mortgage-grace-period/
- https://watcher.guru/news/us-housing-99-americans-cannot-afford-buy-house-2023
- https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/
- https://www.islandernews.com/lifestyle/homes/real-estates-80-20-rule---an-introduction-to-mortgage-insurance/article_b7b1534e-3214-11ee-8374-3b2bae179091.html
- https://wallethub.com/answers/cc/what-percentage-of-america-is-debt-free-2140664784/
- https://www.fidelitybank.com/resources/knowledge-center/calculator-how-much-will-i-save-by-increasing-my-mortgage-payment/
- https://www.lovetoknow.com/life/work-life/how-determine-if-my-neighbor-has-mortgage-his-house
- https://www.moneylion.com/learn/debt-after-7-years/
- https://www.cabotwealth.com/daily/personal-finance/extra-mortgage-payments-save-thousands
- https://www.aljazeera.com/economy/2023/10/31/high-interest-rates-is-hurting-one-more-industry-mortgage-lenders
- https://www.capitalone.com/learn-grow/money-management/remove-late-payments-from-credit-report/
- https://www.hud.gov/topics/avoiding_foreclosure/foreclosuretips
- https://www.dfs.ny.gov/consumers/help_for_homeowners/foreclosure_assistance/if_you_fall_behind
- https://legal-info.lawyers.com/bankruptcy/foreclosures/which-states-have-long-foreclosure-timelines.html
- https://www.linkedin.com/pulse/why-delinquencies-rising-its-all-pandemics-fault-scott-fulford-wslhe?trk=public_post_main-feed-card_reshare_feed-article-content
- https://www.sofi.com/learn/content/tips-to-pay-off-mortgage-in-5-years/
- https://www.rocketmortgage.com/learn/refinance-mortgage-requirements
- https://www.apartmenttherapy.com/shouldnt-make-extra-mortgage-payments-36886679
- https://www.forbes.com/advisor/credit-cards/how-many-capital-one-cards-can-you-have/
- https://www.usatoday.com/money/blueprint/credit-cards/what-is-the-average-credit-card-debt/
- https://www.credible.com/mortgage/missed-mortgage-payment
- https://www.lendingtree.com/home/mortgage/u-s-mortgage-market-statistics/
- https://www.forbes.com/advisor/credit-cards/average-credit-card-debt/
- https://www.newsweek.com/us-housing-mortgage-delinquency-rise-fed-rates-impact-transunion-report-1867945
- https://www.discover.com/home-loans/articles/should-you-make-extra-mortgage-payments/
- https://www.cnbc.com/select/average-american-debt-by-age/
- https://dcba.lacounty.gov/portfolio/foreclosure/
- https://www.bankrate.com/personal-finance/debt/what-is-a-609-dispute-letter/
- https://quizlet.com/771690212/chapter-14-principles-of-financing-flash-cards/
- https://www.unison.com/blog/what-happens-after-late-mortgage-payment/
- https://www.bankrate.com/real-estate/how-much-house-can-i-afford-70k-salary/
- https://www.marketwatch.com/story/heres-one-common-reason-people-have-so-much-credit-card-debt-2018-08-28
- https://www.rocketmortgage.com/learn/cost-of-making-late-payment-on-mortgage
- https://www.thezebra.com/resources/home/average-length-of-homeownership/
- https://www.fool.com/the-ascent/mortgages/articles/youll-never-guess-how-many-americans-own-their-own-homes/
- https://www.bankrate.com/loans/auto-loans/principal-only-payments/
- https://www.statista.com/statistics/1251586/mortgage-borrowers-behind-on-mortgage-payments-by-age-usa/
- https://www.credit.com/blog/how-long-does-foreclosure-take/
- https://www.lexingtonlaw.com/education/how-to-remove-late-payments
- https://www.cnbc.com/select/what-is-the-28-36-rule-for-buying-a-home/
- https://nadiakilburn.com/dont-make-partial-mortgage-payments-when-you-are-behind-on-your-mortgage/
- https://www.txnb.uscourts.gov/sites/txnb/files/basic/RESPA_Provisions_for_North_Texas_Bench_Bar_Mortgage_Modifications.pdf
- https://www.corelogic.com/press-releases/corelogic-us-serious-mortgage-delinquency-rate-remained-all-time-low-october/
- https://www.cbsnews.com/news/debt-ceiling-deadline-default-impact-on-your-money-social-security-mortgage/
- https://ktla.com/news/california/california-has-lowest-rate-of-home-ownership-in-america-study/
- https://www.bankrate.com/finance/credit-cards/states-with-most-credit-card-debt/
- https://www.ppic.org/blog/californias-high-housing-costs-have-created-a-million-house-rich-millionaires/
- https://money.com/auto-loan-credit-card-bill-delinquencies/
- https://www.nationalmortgagenews.com/news/mortgage-industry-prepares-to-ride-out-troubles-in-2023
- https://dfi.wa.gov/homeownership/reverse-mortgages
- https://www.thebalancemoney.com/what-happens-if-i-can-t-pay-my-mortgage-anymore-2385726
- https://www.nasdaq.com/articles/this-is-the-average-age-most-americans-become-mortgage-free
- https://smartasset.com/mortgage/how-much-mortgage-can-i-afford
- https://www.experian.com/blogs/ask-experian/how-long-does-a-late-mortgage-payment-affect-your-credit/
- https://www.cnbc.com/select/debt-free-by-age-45/
- https://www.investopedia.com/articles/pf/05/030905.asp
- https://www.wellsfargo.com/financial-education/homeownership/loan-amortization-extra-payments/
- https://www.statista.com/statistics/639685/us-home-ownership-rate-by-race/
- https://www.pymnts.com/real-estate/2023/record-high-share-of-americans-have-paid-off-their-homes/
- https://www.lendingtree.com/home/mortgage/late-mortgage-payment/
- https://bluewatermtg.com/faq/what-is-the-2-rule-and-is-it-useful/
- https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2024/who-experiences-default
- https://smartasset.com/mortgage/mistakes-to-avoid-when-paying-off-your-mortgage-early
- https://www.businessinsider.com/personal-finance/average-credit-score
- https://www.experian.com/blogs/ask-experian/how-much-americans-owe-on-their-mortgages-in-every-state/
- https://www.quickenloans.com/learn/why-does-my-mortgage-lender-need-my-bank-statements
- https://www.foxbusiness.com/personal-finance/americans-fall-credit-card-debt
- https://www.rocketmortgage.com/learn/1-rule-real-estate
- https://www.telegraph.co.uk/money/property/mortgages/how-become-mortgage-free-by-50/
- https://www.bankrate.com/personal-finance/american-opinions-on-personal-finances-and-us-economy-since-2020-election/
- https://www.bankrate.com/mortgages/how-many-mortgage-payments-can-i-miss/
- https://www.experian.com/blogs/ask-experian/do-mortgages-have-grace-period/
- https://www.propertyshark.com/info/us-homeownership-rates-by-state-and-city/
- https://time.com/6957322/why-credit-card-debt-is-high/
- https://www.newyorkfed.org/microeconomics/hhdc
- https://www.cbsnews.com/news/credit-card-debt-how-to-pay-off/
- https://www.debt.org/real-estate/mortgages/how-to-pay-30-year-mortgage-in-15-years/
- https://www.creditstrong.com/how-long-does-it-take-to-rebuild-credit/
- https://www.newamerica.org/future-land-housing/blog/how-do-americans-lose-their-homes/
- https://www.consumerfinance.gov/ask-cfpb/what-is-a-piggyback-second-mortgage-en-1955/
- https://www.nasdaq.com/articles/40-of-americans-pay-off-their-house-are-they-doing-better-financially
- https://www.nasdaq.com/articles/people-are-falling-behind-on-credit-card-bills-and-auto-loans-at-an-alarming-rate
- https://www.investopedia.com/national-debt-relief-review-5092836
- https://whlawoffices.com/blog/mortgage-payments-foreclosure-bankruptcy/
- https://www.forbes.com/advisor/mortgages/real-estate/median-home-prices-by-state/
