States With the Most Mortgage Debt

The average mortgage debt in Kansas is $155,277 — the 11th lowest amount of any state. The lower mortgage debt is likely partially the result of the state’s relatively affordable housing market. The typical home in Kansas is worth $163,200, only 2.6 times more than the state’s median household income of $62,087. Meanwhile, the comparable affordability ratio nationwide is far higher, at 3.7-to-1.

The state’s affordable housing also likely explains why homeowners in Kansas are less likely than those in most other states to need to take out a mortgage in the first place. Only 57.9% of homeowners in Kansas are financing with a mortgage, compared to 61.7% of all U.S. homeowners.

The average mortgage debt in Nebraska of $156,568 is the 12th lowest of any state and about $73,000 less than the national average mortgage debt. Residents of Nebraska are also slightly less likely to be financing their home with a mortgage than most other Americans. Only 59.5% of homeowners in the state have an outstanding mortgage, compared to the 61.7% share of homeowners nationwide who do.

Both the low average mortgage debt in Nebraska and the relatively small share of homeowners with a mortgage are likely due in part to low home values in the state. The typical home in Nebraska is worth $172,700, nearly $68,000 less than the national median home value of $240,500.

The Midwest has some of the most affordable housing markets in the country. In Wisconsin, for example, the typical home is worth $197,200, only 3.1 times more than the state’s median household income of $64,168. Meanwhile, the affordability ratio nationwide is far higher, at 3.7-to-1.

With a favorable income-to-home value ratio, average mortgage debt is relatively low in Wisconsin. The typical homeowner with a mortgage in the state owes $160,116 in mortgage debt, less than in most states and about $69,000 below the typical homeowner with a mortgage nationwide.

The South has some of the least expensive housing in the country. In Alabama, for example, the typical home is worth just $154,000, the sixth lowest median home value of any state and about $86,500 below the national median. With low home values, state residents can afford homes without taking out large loans. The average mortgage debt among homeowners in Alabama is $160,341, less than in most states and about $69,000 less than the national average mortgage debt.

Home values are typically a reflection of what area residents can afford, and just as home values are low in Alabama, so too are incomes. The typical household in the state earns $51,734 a year, less than in most other states and well below the national median household income of $65,712.

The average mortgage debt in Louisiana is just $165,572, about $64,000 less than the national average. The below average mortgage debt across the state is partially attributable to relatively low home values in the state. The typical Louisiana home is worth just $172,100, less than in most other states and about $68,400 below the national median.

Low home values also mean residents are less likely to need to take out a mortgage to afford a home, and those who do can pay down their mortgage faster. Only 51.7% of homeowners in Louisiana are paying a mortgage, a smaller share than in all but two other states and well below the 61.7% national share.