Special Report
How Mortgage Debt in Kentucky Compares to Other States
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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.
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 $65,712.
All mortgage debt data used in this story from the 2020 State of Credit Report by Experian, a consumer reporting agency. Average mortgage debt is a measure of the average first mortgage balance per consumer who had an open first mortgage account. Figures for median home value, median household income, homeownership rates, and the share of owner-occupied households with a mortgage came from the U.S. Census Bureau’s 2019 American Community Survey.
Rank | State | Average mortgage debt ($) | Median home value ($) | Median household income ($) | Homeowners with a mortgage (%) |
---|---|---|---|---|---|
50 | West Virginia | 128,004 | 124,600 | 48,850 | 46.4 |
49 | Mississippi | 135,374 | 128,200 | 45,792 | 49.1 |
48 | Indiana | 140,915 | 156,000 | 57,603 | 65.2 |
47 | Ohio | 142,293 | 157,200 | 58,642 | 62.1 |
46 | Arkansas | 143,066 | 136,200 | 48,952 | 53.0 |
45 | Kentucky | 143,329 | 151,700 | 52,295 | 56.9 |
44 | Iowa | 146,408 | 158,900 | 61,691 | 59.9 |
43 | Oklahoma | 147,538 | 147,000 | 54,449 | 54.4 |
42 | Michigan | 150,482 | 169,600 | 59,584 | 59.3 |
41 | Missouri | 155,203 | 168,000 | 57,409 | 60.2 |
40 | Kansas | 155,277 | 163,200 | 62,087 | 57.9 |
39 | Nebraska | 156,568 | 172,700 | 63,229 | 59.5 |
38 | Wisconsin | 160,116 | 197,200 | 64,168 | 62.7 |
37 | Alabama | 160,341 | 154,000 | 51,734 | 55.3 |
36 | Louisiana | 165,572 | 172,100 | 51,073 | 51.7 |
35 | Maine | 167,615 | 200,500 | 58,924 | 60.5 |
34 | Vermont | 172,919 | 233,200 | 63,001 | 61.7 |
33 | South Dakota | 173,005 | 185,000 | 59,533 | 55.6 |
32 | New Mexico | 174,292 | 180,900 | 51,945 | 52.9 |
31 | Pennsylvania | 175,648 | 192,600 | 63,463 | 59.1 |
30 | North Dakota | 181,930 | 205,400 | 64,577 | 52.1 |
29 | South Carolina | 183,603 | 179,800 | 56,227 | 58.0 |
28 | Tennessee | 184,360 | 191,900 | 56,071 | 58.2 |
27 | North Carolina | 188,520 | 193,200 | 57,341 | 63.2 |
26 | Illinois | 189,808 | 209,100 | 69,187 | 62.4 |
25 | Georgia | 196,030 | 202,500 | 61,980 | 64.2 |
24 | Minnesota | 198,039 | 246,700 | 74,593 | 65.1 |
23 | Texas | 201,084 | 200,400 | 64,034 | 56.1 |
22 | Montana | 206,561 | 253,600 | 57,153 | 55.4 |
21 | New Hampshire | 208,570 | 281,400 | 77,933 | 64.9 |
20 | Idaho | 208,645 | 255,200 | 60,999 | 64.3 |
19 | Wyoming | 208,716 | 235,200 | 65,003 | 59.2 |
18 | Delaware | 210,933 | 261,700 | 70,176 | 65.5 |
17 | Florida | 214,203 | 245,100 | 59,227 | 56.3 |
16 | Rhode Island | 217,019 | 283,000 | 71,169 | 66.3 |
15 | Arizona | 229,332 | 255,900 | 62,055 | 62.4 |
14 | Alaska | 244,840 | 281,200 | 75,463 | 60.8 |
13 | Connecticut | 247,241 | 280,700 | 78,833 | 66.2 |
12 | Nevada | 253,602 | 317,800 | 63,276 | 67.4 |
11 | Utah | 258,635 | 330,300 | 75,780 | 70.1 |
10 | Oregon | 261,147 | 354,600 | 67,058 | 66.1 |
9 | Virginia | 269,570 | 288,800 | 76,456 | 67.7 |
8 | New Jersey | 270,329 | 348,800 | 85,751 | 65.6 |
7 | Maryland | 274,311 | 332,500 | 86,738 | 71.9 |
6 | New York | 274,349 | 338,700 | 72,108 | 59.6 |
5 | Massachusetts | 292,513 | 418,600 | 85,843 | 68.3 |
4 | Colorado | 297,813 | 394,600 | 77,127 | 70.8 |
3 | Washington | 307,407 | 387,600 | 78,687 | 67.7 |
2 | Hawaii | 387,977 | 669,200 | 83,102 | 64.4 |
1 | California | 396,229 | 568,500 | 80,440 | 69.0 |
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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