A new analysis reveals where homeowners are debt free
A new report shows the US cities with the largest share of mortgage-free homeowners and reveals that they haven’t all got there by the same route.
LendingTree’s analysis has Detroit at number 1 (55% mortgage free) but this is due to its risky reputation with mortgage lenders meaning a low homeownership rate.
Miami takes second place (52%) but for its high share of wealthy foreign owners paying cash. Meanwhile, cash-ready investors own a high share of Las Vegas homes, putting the city in third place (48%).
California, while having high home prices, also has 6 of the top 20 cities that are ‘free and clear’ in LendingTree’s analysis. That’s due to high property taxes increasing the share of long-term owners who have cleared their mortgage.
Conversely, Washington D.C., Virginia Beach and Seattle are the top three least mortgage-free cities as high incomes are offset by high prices making a mortgage a necessity for most.
The strong share of military families in Virginia Beach with may accessing VA loans, means a high share of homeowners in the city. But as they are typically younger mortgage holders, they are still paying down the debt.
