Average mortgage debt has increased by 14% over the last 5 years | Recent news
the average mortgage debt held by US homeowners rose 14%, according to data from Experian. At the end of 2021, the average mortgage balance was $223,952 in the United States, compared to an average of $196,403 for the same period in 2017.
Average homeowner mortgage debt in states such as Washington, Texas and Tennessee has increased the most, rising more than 20%. This period of soaring prices took place against a backdrop of unprecedented social and financial upheaval: the onset of the COVID-19 pandemic, historically low interest rates in 2020 and the ensuing real estate market frenzy, among others. The country has also seen more city dwellers move to suburban areas in search of more space and lower prices. Early 2021, 82% of urban areas had fewer people moving in than leaving, according to Bloomberg.
Keep housing expenses down equal to or less than 30% of income is a widely accepted measure used by researchers and economists to measure the affordability – or financial burden – of housing in the United States. However, rising house prices in some states have forced Americans to get comfortable pay beyond suggested 30% threshold in some of the most expensive metropolitan areas in the United States
Experian examined how mortgage debt varies by state and how it has increased over time. This analysis includes mortgage holders who owned only one property, as well as those who had invested in one or more properties that they themselves did not inhabit. Data is representative of total mortgage debt per person and includes residential property owners only.
The states reporting the highest and lowest average mortgage debt closely track housing affordability in the United States. grown up by more than 42% in total between 2017 and 2021, according to the S&P Case-Shiller US National House Price Index. No US state has seen its average mortgage debt fall in the last five years analyzed by Experian.