States With the Most Mortgage Debt

The average mortgage debt in Kentucky is $143,329 — the sixth lowest amount of any state. Mortgage debts tend to be lower in places where home values are also low, and in Kentucky, the typical home is worth just $151,700, the fifth lowest median home value of any state.

Home values are typically a reflection of what area residents can afford, and just as home values are low in Kentucky, so too are incomes. The typical household in the state earns $52,295 a year, less than in all but six other states and well below the national median household income of $65,712.

Iowa is one of only eight states where the average mortgage debt is less than $150,000. The low mortgage debt is likely partially the result of the state’s relatively affordable housing market. The typical home in Iowa is worth $158,900, only 2.6 times more than the state’s median household income of $61,691. Meanwhile, nationwide, the comparable affordability ratio is far higher, at 3.7-to-1.

Affordable housing also likely explains the widespread homeownership in the state. Iowa’s homeownership rate of 70.5% is 10th highest among states and well above the 64.1% national rate.

Oklahoma is one of only four states where most homes are worth less than $150,000. Due in part to relatively low home values, mortgage debt in Oklahoma is also relatively low, averaging just $147,538.

Home values are typically a reflection of what area residents can afford, and just as home values are low in Oklahoma, so too are incomes. The typical household in the state earns $54,449 a year, less than in most other states and well below the national median household income of $65,712.

The average homeowner with a mortgage in Michigan has $150,482 in outstanding mortgage liabilities — the ninth lowest amount of any state. The relatively low mortgage debt is likely partially the result of the state’s affordable housing market. The typical home in Michigan is worth $169,600, only 2.8 times more than the state’s median household income of $59,584. Meanwhile, the affordability ratio nationwide is far higher, at 3.7-to-1.

Affordable housing also likely explains the widespread homeownership in the state. Michigan’s homeownership rate of 71.6% is fifth highest among states and well above the 64.1% national rate.

The typical home in Missouri is worth $168,000, about $72,500 less than the median home value nationwide. Lower home values mean that homeowners borrow less. The average mortgage debt in Missouri is $155,203, one of the lowest averages among states.

Home values are typically a reflection of what area residents can afford, and just as home values are low in Missouri, so too are incomes. The typical household in the state earns $57,409 a year, less than in most other states and well below the national median household income of $65,712.