Analysis of Homeownership Trends in 2021: A Look at Free-and-Clear Owners Across the States

The latest survey on homeownership in the United States has revealed some interesting findings, with California standing out as one of the top states for free-and-clear homeowners. According to Census data for 2021, California has 2.4 million households that are free of any home loan, making it the third-highest count in the nation.

The survey also highlighted that Texas and Florida have the highest number of free-and-clear homeowners, with 2.9 million and 2.5 million households respectively. However, when looking at the percentage of homeowners who are mortgage-free, California ranks lower at 33%, with only four places having a smaller share.

In terms of monthly housing costs for no-mortgage households, California falls in the middle of the pack at $694, which is the ninth-highest among the states. The priciest states for free-and-clear owners were New Jersey, Connecticut, Massachusetts, New Hampshire, and New York, known for their high property tax bills.

On the other hand, the lowest costs for no-mortgage owners were found in West Virginia, Mississippi, Arkansas, Louisiana, and Alabama. When comparing these costs to owners with mortgages, California’s median cost was $2,523 a month, ranking third behind D.C. and Hawaii.

Despite the savings on housing costs for free-and-clear homeowners, some long-time owners still face financial stress due to other expenses. In California, 17% of free-and-clear owners were considered “burdened” by housing costs, spending 30% or more of their income on shelter.

Overall, the survey sheds light on the varying costs of homeownership across the country and the financial challenges that some homeowners face, even without a mortgage. It serves as a reminder that owning a home, while a valuable asset, comes with its own set of financial responsibilities.