How Mortgage Debt in New Jersey Compares to Other States
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 in New Jersey has a balance of $270,329 — more than in the vast majority of other states. Higher mortgage debt is more common in places with high home values, and in New Jersey, the typical home is worth $348,800, over $100,000 more than the typical U.S. home.
Even accounting for income, homeownership in New Jersey is less affordable than much of the rest of the country. The state’s median home value is 4.1 times more than the state’s median household income of $85,751. Meanwhile, the comparable affordability ratio nationwide is slightly lower, at 3.7-to-1.
All mortgage debt data used in this story from the 2020 State of Credit Report by Experian, a consumer reporting agency. Average mortgage debt is a measure of the average first mortgage balance per consumer who had an open first mortgage account. Figures for median home value, median household income, homeownership rates, and the share of owner-occupied households with a mortgage came from the U.S. Census Bureau’s 2019 American Community Survey.
RankStateAverage mortgage debt ($)Median home value ($)Median household income ($)Homeowners with a mortgage (%)50West Virginia128,004124,60048,85046.449Mississippi135,374128,20045,79249.148Indiana140,915156,00057,60365.247Ohio142,293157,20058,64262.146Arkansas143,066136,20048,95253.045Kentucky143,329151,70052,29556.944Iowa146,408158,90061,69159.943Oklahoma147,538147,00054,44954.442Michigan150,482169,60059,58459.341Missouri155,203168,00057,40960.240Kansas155,277163,20062,08757.939Nebraska156,568172,70063,22959.538Wisconsin160,116197,20064,16862.737Alabama160,341154,00051,73455.336Louisiana165,572172,10051,07351.735Maine167,615200,50058,92460.534Vermont172,919233,20063,00161.733South Dakota173,005185,00059,53355.632New Mexico174,292180,90051,94552.931Pennsylvania175,648192,60063,46359.130North Dakota181,930205,40064,57752.129South Carolina183,603179,80056,22758.028Tennessee184,360191,90056,07158.227North Carolina188,520193,20057,34163.226Illinois189,808209,10069,18762.425Georgia196,030202,50061,98064.224Minnesota198,039246,70074,59365.123Texas201,084200,40064,03456.122Montana206,561253,60057,15355.421New Hampshire208,570281,40077,93364.920Idaho208,645255,20060,99964.319Wyoming208,716235,20065,00359.218Delaware210,933261,70070,17665.517Florida214,203245,10059,22756.316Rhode Island217,019283,00071,16966.315Arizona229,332255,90062,05562.414Alaska244,840281,20075,46360.813Connecticut247,241280,70078,83366.212Nevada253,602317,80063,27667.411Utah258,635330,30075,78070.110Oregon261,147354,60067,05866.19Virginia269,570288,80076,45667.78New Jersey270,329348,80085,75165.67Maryland274,311332,50086,73871.96New York274,349338,70072,10859.65Massachusetts292,513418,60085,84368.34Colorado297,813394,60077,12770.83Washington307,407387,60078,68767.72Hawaii387,977669,20083,10264.41California396,229568,50080,44069.0
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