Home News One-third of California homeowners have no mortgage – Silicon Valley

One-third of California homeowners have no mortgage – Silicon Valley


”Survey says” seems to be at numerous rankings and scorecards whereas noting these grades are finest seen as a mixture of clever interpretation and knowledge.

Buzz: California has 2.4 million households dwelling what many think about a dream – being a free-and-clear home-owner, the third-highest rely among the many states.

Supply: My trusty spreadsheet reviewed Census knowledge monitoring owners – dividing households between these dwelling with or with out mortgages – for 2021 within the 50 states and the District of Columbia.


The place have been most homeowners free and away from any house mortgage in 2021?

They’re in Texas at 2.9 million, and Florida at 2.5 million. After California comes New York at 1.7 million and Pennsylvania at 1.5 million.

But no-mortgage homeowners in California are solely 33% of all owners – and solely 4 locations have a smaller share: D.C. at 24%, Maryland at 28% and Colorado and Utah at 30%.

West Virginia has the most important share of free-and-clear homeowners at 53%, adopted by Mississippi at 51%, North Dakota and New Mexico at 47% and Louisiana at 46%. By the way in which, Texas and Florida have been each at 43%.


Ponder the comparatively modest possession prices of free-and-clear life.

Census tracks the bills homeowners incur for his or her shelter akin to property taxes, insurance coverage, routine operation and maintenance of the residence, and mortgage funds – or not, within the case of the free-and-clear crowd.

In California, that spending translated to median month-to-month housing value for a no-mortgage family of $694 in 2021. That was the ninth-highest among the many states and never terribly stunning contemplating Californias expensive value of dwelling.

The priciest states for free-and-clear homeowners have been New Jersey at $1,081, then Connecticut at $926, Massachusetts at $871, New Hampshire at $860 and New York at $813. These are states recognized for enormous property tax payments.

The place do we discover the bottom prices for no-mortgage homeowners? West Virginia was $338, then Mississippi at $356, Arkansas and Louisiana at $372, and Alabama at $379. By the way in which, Texas was No. 18 at $567, and Florida was No. 21 at $548.

Now evaluate these month-to-month bills to the additional spending by homeowners with mortgages.

In California, the median value was $2,523 a month in 2021 – No. 3 behind solely D.C. at $2,639 and Hawaii at $2,584. These are among the many priciest locations to purchase a house within the nation and large house loans are normally required to make a purchase order. After California on this value rating was New Jersey at $2,458 and Massachusetts at $2,323.

The bottom prices have been present in West Virginia at $1,071, then Arkansas at $1,147, Indiana at $1,195, Mississippi at $1,200 and Alabama at $1,223. Rival Texas was No. 16 at $1,765 and Florida was No. 22 at $1,616.

Let’s take into consideration the no-mortgage proprietor’s financial savings on a share foundation.

In California, 2021’s free-and-clear prices have been 72% under these paid by mortgaged households, No. 3 among the many states with Louisiana and Nevada. Larger financial savings have been solely present in Hawaii at 77%, and Virginia at 73%.

The smallest financial savings have been seen in Connecticut, New Jersey and Vermont at 56%, New Hampshire at 57% and Rhode Island at 61%. Texas was No. 24 at 68% and Florida, No. 31 at 66%.

Backside line

Regardless of the low possession prices for folk with no mortgage, assembly housing prices can nonetheless be a battle.

Some long-time homeowners who’ve paid off house loans can nonetheless be financially careworn by different housing prices that pressure their money stream. Nevertheless, these of us do personal a beneficial belongings with no mortgage – a possible nest egg to faucet if a monetary disaster emerges.

In California, 17% of free-and-clear homeowners in 2021 have been thought of “burdened” by housing prices as a result of they spend 30% or extra of their revenue on shelter. That was the eighth-highest stage nationwide.

On the prime of the checklist have been New Jersey with 23% of no-mortgage homeowners “burdened,” then got here Connecticut and New York at 20%, Massachusetts at 19% and New Hampshire, Rhode Island and Vermont at 18%. Texas was No. 13 highest at 14% and Florida was No. 8 at 17%.

Lowest? Utah at 9%, then Indiana, Tennessee and Virginia at 10%.

Jonathan Lansner is the enterprise columnist for the Southern California Information Group. He could be reached at jlansner@scng.com


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