How mortgage debt in Minnesota compares to other states
The COVID-19 pandemic has fueled an increase in demand among home buyers that is only now starting to show signs of slowing down. This historic demand has coincided with low borrowing costs, a limited housing stock and labor and material bottlenecks that have hampered new construction. These factors have pushed home values to all-time highs, forcing many buyers to take out mortgages that put them in heavy debt.
According to a recent report from Experian, a consumer credit reporting company, US homeowners with mortgages had an average outstanding balance of $ 229,242 in 2020. Mortgage debt can be affected by several regional factors and, hence, the amount of debt of US homeowners. reimburse varies widely from state to state.
Average mortgage debt in Minnesota is $ 198,039 – the highest in the Midwest, but close to the median of any state and about $ 31,200 below the national average.
A typical single-family home in Minnesota is worth $ 246,700, compared to a national median of $ 240,500. Although house prices closely match the national average, they are generally more affordable, as incomes are relatively high in Minnesota. The typical household in the state earns $ 74,593 per year, well above the national median household income of $ 65,712.
All of the mortgage debt data used in this article comes from the 2020 Credit Report Report from Experian, a consumer information 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 share of owner-occupied households with a mortgage come from the 2019 American Community Survey from the U.S. Census Bureau.