Why 40% of U.S. homeowners have no mortgage-and the number keeps growing

"A key factor driving the rise in mortgage-free homeownership is demographics. Older homeowners are more likely to be mortgage-free, and as Americans live longer and the massive baby boomer generation ages into their senior years, the U.S. population has skewed older-pushing up the share of homeowners without mortgages. According to ResiClub 's analysis, 54% of the 35 million U.S. homeowners who are mortgage-free are 65 years old or older."

"Among the 200 largest U.S. metros by population, these 5 have the HIGHEST percentage of mortgage-free homeowners: 61.8% -> McAllen, TX 57.8% -> Brownsville, TX 57.1% -> Beaumont, TX 56.2% -> Kingsport, TN 55.8% -> Longview, TX Among the 200 largest U.S. metros by population, these 5 have the LOWEST percentage of mortgage-free homeowners: 26.4% -> Washington, DC 27.0% -> Provo, UT 27.1% -> Denver, CO 27.2% -> Greeley, CO 28.8% -> Ogden, UT"

U.S. Census Bureau data show 40.3% of owner-occupied housing units are mortgage-free, up from 39.8% in 2023 and 32.8% in 2010. Older homeowners account for a large share of mortgage-free ownership: 54% of the 35 million mortgage-free homeowners are 65 or older, and 64% of homeowners aged 65+ own their primary homes free and clear. Mortgage-free rates vary widely across metros, with lower-value regions and areas with older populations showing higher percentages. Several Texas metros top the list above 55%, while some large metros like Washington, DC and Denver report rates near the high-20s.

Read at Fast Company