States Adding the Most Mortgage Debt (2024)

Mortgage debt is by far the biggest category of debt for Americans, with the average household owing around $100,000 and our total balance exceeding $12 trillion. Interest rates have risen rapidly in recent years as well, making the cost of homeownership even more daunting.

Nationally, mortgage debt has been on an upward trend over the past few years. To determine the states adding the most mortgage debt, WalletHub compared the 50 states based on proprietary data from Q3 2023 to Q4 2023.

“Mortgage rates are the highest they’ve been in around a decade, and home prices have seen a meteoric rise in recent years as well. Even small increases in home prices can lead to thousands of dollars in extra mortgage interest costs for homeowners, so it’s important to choose wisely when deciding where and when to buy a house.”

John Kiernan, WalletHub Editor

Main Findings

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States Adding the Most Mortgage Debt

Overall Rank*	State	Total Score	Change in Mortgage Debt Q4 2023 vs Q3 2023 Rank	Average Mortgage Balance Q4 2023 & Monthly Payment Q4 2023 Rank
1	Maryland	88.84	1	8
2	Nevada	76.81	4	12
3	Hawaii	75.35	27	2
4	Texas	74.07	8	13
5	Arizona	73.20	6	19
6	California	70.85	42	1
7	Massachusetts	70.67	23	6
8	New York	70.40	33	3
9	Maine	69.89	3	34
10	Alaska	69.42	15	16
11	Virginia	68.63	21	10
12	Oregon	66.28	22	14
13	Georgia	65.82	19	17
14	Utah	65.68	26	11
15	Florida	65.64	24	15
16	Washington	65.58	40	4
17	Arkansas	65.35	2	48
18	Colorado	65.15	37	7
19	Alabama	65.12	5	43
20	Oklahoma	64.89	7	37
21	South Carolina	64.11	14	27
22	Louisiana	63.08	13	32
23	Tennessee	62.38	18	26
24	New Jersey	62.05	41	5
25	Indiana	61.09	11	42
26	Minnesota	59.81	30	23
27	Ohio	59.67	10	46
28	Michigan	59.46	16	40
29	Wisconsin	59.45	12	44
30	New Hampshire	59.36	38	18
31	Illinois	58.79	35	21
32	North Dakota	58.34	20	36
33	Rhode Island	58.14	28	29
34	West Virginia	57.68	9	50
35	Missouri	55.62	25	41
36	Kentucky	54.72	17	49
37	New Mexico	54.54	31	39
38	Kansas	54.13	32	38
39	North Carolina	53.83	39	30
40	Pennsylvania	53.19	36	35
41	Mississippi	51.27	29	47
42	Iowa	50.55	34	45
43	South Dakota	48.06	44	22
44	Nebraska	46.50	43	28
45	Idaho	45.91	45	25
46	Montana	43.64	46	20
47	Connecticut	42.95	47	9
48	Wyoming	23.32	49	24
49	Delaware	22.93	48	33
50	Vermont	8.95	50	31

Note: *No. 1 = Largest Mortgage Debt Increase

In-Depth Look at the States Adding the Most Mortgage Debt

Maryland

Maryland added the most mortgage debt from Q3 2023 to Q4 2023, at least in percentage terms, with the average balance rising by 1.23% to $283,092. While this may not seem like an overly large increase, it’s a lot when you consider the fact that no other state had an increase above 1%. In fact, 17 states even saw mortgage debt decrease during Q4.

In addition to having the biggest increase in the average mortgage balance, Maryland residents also have one of the biggest mortgage balances in general. Their average monthly payment is very high as a result, at $2,145.

In addition to a high amount of mortgage debt, Maryland residents also have to deal with a relatively high property tax rate on their homes.

Nevada

Nevada residents added the second-most mortgage debt from Q3 2023 to Q4 2023, with a 0.73% increase that brought the average balance in the state to $279,215.

The average homeowner in Nevada can expect to shell out $1,888 per month toward the cost of their mortgage, which isn’t as bad as in the top state but still very expensive. Nevada only ranks 39th in the country when it comes to general affordability for its residents.

Nevada residents struggle with other borrowing, too, ranking 8th among the states adding the most personal loan debt.

Hawaii

Hawaii added the third-most mortgage debt from Q3 2023 to Q4 2023. While the percentage increase was small, at just 0.07%, the average mortgage balance grew to a staggering $366,362. For context, only four states had an average balance above $300,000 in Q4, and many states had an average below $200,000.

The average monthly mortgage payment in Hawaii is $2,419, which is a lot to deal with considering Hawaii is already the second-least affordable state to live in.

Tips for Paying Off Mortgage Debt

Make extra payments: Consider making additional payments toward your mortgage whenever possible. Even small extra payments can add up over time and significantly reduce the total interest paid. Check with your lender to ensure there are no prepayment penalties, and if not, allocate extra funds toward the principal to accelerate your mortgage payoff.
Switch to biweekly payments: Instead of making monthly payments, switch to a biweekly payment schedule. This results in 26 half-payments (or 13 full payments) per year instead of the usual 12. Over time, this can shave years off your mortgage term and save you money on interest.
Use windfalls strategically: Apply unexpected windfalls, such as tax refunds, work bonuses, or inheritance money, toward your mortgage. Using these extra funds to make lump-sum payments can make a significant impact on reducing the outstanding balance and shortening the overall repayment period.
Consider refinancing: If current market conditions are favorable and interest rates have dropped since you initially took out your mortgage, explore the option of refinancing. Refinancing your mortgage to a lower interest rate can lead to significant long-term savings.
Review and Trim Your Budget: Regularly review your budget and identify areas where you can cut unnecessary expenses. Redirecting even small amounts from non-essential spending toward your mortgage can add up over the years.

Methodology

In order to determine the states with the largest mortgage debt increases, WalletHub compared the 50 states across two key dimensions: 1) Change in Mortgage Debt and 2) Average Mortgage Balance & Monthly Payment.

We evaluated the states using three individual metrics, which drew from WalletHub’s proprietary data on consumer debt. The metrics are listed below with their corresponding weights, each metric being graded on a 100-point scale.

Finally, we determined each state’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Change in Mortgage Debt – Total Points: 70

Mortgage Debt Average Balance (per Tradeline) Change Q4 2023 vs Q3 2023: Full Weight (~70.00 Points)

Average Mortgage Balance & Monthly Payment – Total Points: 30

Mortgage Debt Average Balance (per Tradeline) Q4 2023: Full Weight (~15.00 Points)
Average Monthly Mortgage Payment (per Tradeline) Q4 2023: Full Weight (~15.00 Points)

Sources: Data used to create this ranking were collected as of February 29, 2024 from WalletHub database.

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