How Mortgage Debt in Washington 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.
Washington is one of only three states where the average mortgage debt exceeds $300,000. An estimated 67.7% of homeowners in the state are paying down a mortgage, and the average debt among them stands at $307,407 — about $78,200 more than the national average.
Homes in Washington are less affordable than they are on average nationwide. The typical home in the state is worth $387,600, 4.9 times more than the state’s median household income of $78,687. Meanwhile, the comparable affordability ratio nationwide is far lower, at 3.7-to-1.
All mortgage debt data used in this story from the 2020 State of Credit Report by Experian, a consumer reporting agency. Average mortgage debt is a measure of the average first mortgage balance per consumer who had an open first mortgage account. Figures for median home value, median household income, homeownership rates, and the share of owner-occupied households with a mortgage came from the U.S. Census Bureau’s 2019 American Community Survey.
RankStateAverage mortgage debt ($)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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