Utah's share of mortgage-free homes is low — but rising
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Utah has the nation's fourth-lowest share of mortgage-free homes — a likely result of the state's disproportionately young population.
The big picture: That bucks a national trend in which the share of homes owned outright continues to reach new highs, according to the latest census data.
- Many of those homeowners are baby boomers who refinanced when mortgage rates were lower.
By the numbers: Just 31.9% of Utah homes were owned outright in 2023, up about 3% from a decade ago.
- Only Colorado, Maryland and Washington, D.C. reported smaller shares.
Zoom in: Living mortgage-free doesn't mean living expense-free, but it's often reason enough for empty nesters to hold onto their big homes.
- More people have also bought homes with cash since interest rates started rising, Redfin research shows.
Between the lines: Utah may not have a lot of mortgage-free homeowners, but residents are paying rates that, on the whole, are lower here than anywhere else in the nation — making mortgage-payers similarly reluctant to upgrade or downsize.
The latest: After falling rates prompted a flurry of buyer queries in September, average rates had risen again to almost 6.8% as of Tuesday.
Zoom out: The share of mortgage-free homes in the U.S. climbed from 35.7% to 39.8% in the past decade, per the American Community Survey one-year estimates.
- States including West Virginia and Mississippi have higher shares, while California and Washington have lower shares.
What's next: People who took out pricey mortgages in recent years are paying close attention to current rates.
They're ready to shrink their monthly payments, according to Chen Zhao, head of economic research at Redfin.