The number of mortgage-free, single-family homes and condos increased by 7.9 million from 2012 to 2022, to 33.3 million, according to Census Bureau data analyzed by Bloomberg. As baby boomers age, they're snapping up—or holding on to—a larger share of homes overall.
Nearly 40% of U.S. homes are mortgage-free, census shows.
The homeownership rate in the United States rose slightly in 2022, reaching the highest figure since 2011. In 2022, the proportion of households which are occupied by owners stood at 65.9 percent. The U.S. homeownership rate was the highest in 2004 before the 2007-2009 recession hit and decimated the housing market.
Mortgage-Paying Habits of Average Americans
For example, according to the Census Bureau, fewer than 28% homeowners below retirement age have paid off their homes completely, as opposed to almost 63% of those 65 or older.
Does it feel out of reach to own your home free-and-clear? Believe it or not, “California has 2.4 million households living what many consider a dream – being a free-and-clear homeowner, the third-highest count among the states, according to 2021 Census data.” How does this affect the housing market?
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.
2021 count of owner households, with or without a mortgage
Buzz: California has 2.4 million households living what many consider a dream – being a free-and-clear homeowner, the third-highest count among the states.
Myth 1: Being debt-free means being rich.
A common misconception is equating a lack of debt with wealth. Having debt simply means that you owe money to creditors. Being debt-free often indicates sound financial management, not necessarily an overflowing bank account.
Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.
Almost 40% of US homeowners own their homes outright as of 2022—many of them baby boomers who refinanced when rates were low.
In fact, some Gen Z real estate trends are pointing in an optimistic direction. According to a recent study from a major real estate brokerage about 30% of 25-year-olds owned their own homes in 2022, 2-3% ahead of both millennials and Gen X at the same age.
Topline. California's 55.3% average homeownership rate in 2022 was the state's best since 2011 – but only Washington, D.C., at 42% and New York at 54% were lower. The highest ownership rates in 2022 were found in West Virginia at 79%, then Wyoming at 75%, Minnesota at 75%, Maine at 75% and Delaware at 75%.
Nearly 40% of U.S. homeowners were living mortgage-free in 2022, according to a Bloomberg analysis of Census Bureau data. Many of them were baby boomers who refinanced when rates were low.
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.
Homeowners typically make their normal monthly mortgage payments and expect to pay off their homes over 30 years.
The brief's key findings are: An unconventional strategy allows individuals to use early Social Security benefits like a “free loan,” paying back the principal while keeping the interest. If this strategy were widely adopted, it would cost Social Security $6 billion to $11 billion per year today and more in the future.
The survey, "Retirement and Mortgages," by national mortgage banker American Financing, found 44 percent of Americans between the ages of 60 and 70 have a mortgage when they retire, and as many as 17 percent of those surveyed say they may never pay it off.
There's no age limit for getting or refinancing a mortgage. Thanks to the Equal Credit Opportunity Act, seniors have the right to fair and equal treatment from mortgage lenders. However, when refinancing a home loan, seniors can face certain challenges – particularly with how lenders view retirement income.
Are people with less debt happier? Yes, 97% of people with debt say they would be happier without it. People with debt are more likely to suffer depression or anxiety.
So, when you hear about people who have absolutely no debt, live on less than they make, and have a stash of cash for emergencies, you might think they're . . . weird. But living a debt-free life isn't only for a special group of people. It's something anyone can do with hard work and some special characteristics.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Currently, the states with some of the lowest mortgage rates include Connecticut, Idaho, Maine, New Hampshire, and Tennessee.
64% of Americans own real estate. 35% of the American population does not own their own homes. Homeownership rates have increased to nearly 65% in the US since the 1940s.
Millionaire Households: 1.14 million
California is a Western US state and has total millionaire households of around 1.14 million. California's millionaires to total households ratio of 8.51% places it among the states with the most millionaires per capita in the US.