While exact figures vary, roughly one-third of Americans don't own a home, with recent data showing around 35-40% renting or not owning, though this fluctuates; younger generations, especially Millennials and Gen Z, face greater hurdles, with some studies suggesting nearly half of young adults feel they'll never own due to affordability challenges, while older groups see higher rates, with many Baby Boomers owning outright.
New York (52.2%), California (55.3%), & Hawaii (60.6%) have the lowest rates of homeownership in the United States.
Federal Reserve data shows that about 23% of Americans have no debt.
According to a new analysis from ResiClub based on US Census Bureau data, 40.3% of owner-occupied homes in the country were mortgage-free in 2024, marking a record high and a modest uptick from 39.8% the year prior.
According to ResiClub's analysis of the U.S. Census Bureau's new annual data, 40.3% of U.S. owner-occupied housing units are now mortgage-free, marking a new high for this data series. That's up from 39.8% in 2023.
It might make sense, for example, to pay off your mortgage early if you struggle with keeping money in the bank. Your home can be a forced-savings tool, and making extra payments can save you thousands of dollars in mortgage interest over time, plus you'll build equity in your home more quickly.
The average age to pay off a mortgage in the U.S. is around 62, with many becoming mortgage-free in their early 60s, coinciding with or just after typical retirement age, though figures vary by source. While some financial experts suggest paying it off by 45 for aggressive investing, data shows a significant portion of homeowners, especially older ones (60+), are mortgage-free, but increasingly, older adults (60s, 70s, 80s) carry more mortgage debt than previous generations, according to Marketplace.
In 1998, 26% of Americans ages 65-74 held home-secured debt such as mortgages, yet by 2022, that grew to 32.2%. 1 This trend is particularly pronounced among those ages 75 and up, with 27.6% holding home-secured debt in 2022, up from 11.6% in 1998.
In other words, younger generations are “giving up.” That's according to Northwestern's Seung Hyeong Lee and Chicago's Younggeun Yoo, who also cited a 2024 Harris Poll survey about the state of real estate that showed 42% of Americans and 46% of Gen Z respondents agreed with this statement: “No matter how hard I work, ...
There were over 102 million renters (31.7%) in the U.S. compared to 221 million homeowners (68.2%), according to the official 2021 figures. The number of renters in the country has fluctuated year-on-year for the past six years, with 33.5% of people renting in 2014.
Short-term savings: Renting is cheaper than buying in the short term because you don't need a big down payment or lump sum to buy a house. Moving flexibility: You have much more flexibility with changing your home and moving around. This is great for individuals not set on living in the same place for years to come.
Generally speaking, a credit score of 670 or above is considered desirable. With a credit score in this range, you are more likely to be viewed as a reliable borrower by lenders, making it easier to qualify for personal loans, credit cards and other forms of credit.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
Suze Orman strongly advocates paying off your mortgage by retirement for financial freedom and peace of mind, but her advice on how varies by situation, often prioritizing a solid emergency fund and retirement savings first, especially if interest rates are low. While she pushes for paying down debt aggressively (even reducing retirement savings beyond the 401(k) match), she cautions against draining savings for low-interest mortgages if it leaves you vulnerable to job loss or emergencies, suggesting you should have a strong safety net before using savings to pay it off.
As a homeowner, your equity is your biggest advantage in today's market. If you're mortgage-free (or close to it), it could give you the power to buy your next home in cash. That means you'd still have no mortgage payment in retirement, plus: Less financial stress as you age.
Paying off a mortgage earlier used to be more common - 40% of borrowers who took out a mortgage in 2017 will be over 65 when their mortgage matures. But 34% of all mortgages are now lasting longer than 30 years (compared to just 20% in 2007), so paying off a mortgage in retirement is becoming increasingly common.