Which U.S. Cities Have the Most Unpaid Mortgages?

The U.S. Chamber of Commerce has analyzed data from the U.S. Census Bureau and have pinpointed the nation’s cities with the most unpaid mortgages. On average, it takes 30 years for the average homeowner to fully pay off a mortgage, and according to the report, 61.3% of homeowners nationwide are still in debt on their homes.

For the report, the Chamber of Commerce examined areas where homeowners were most likely to have unpaid mortgages through an analysis of housing data in 170 of the most populous cities across the country, and found:

• Nationwide, 51.1 million homeowners have unpaid mortgages, representing 61.3% of all homeowners.
• Cities in California dominate the top five list, with Fontana, California holding the top spot, and Moreno Valley, California at number three; and Riverside, California ranked fifth.
• Two cities within the Dallas metropolitan area rank within the top 10, including McKinney, Texas (sixth) and Frisco, Texas (ninth), while McKinney also ranks number one for cities with the newest homeowners, with a median residence duration of only five years.
• In terms of cities with the most paid-off mortgages, Detroit ranked first, with 66.2% of its homeowners being mortgage-free.

“Not only does California have the most expensive median monthly housing costs in the nation, but several of its cities also lead the list of cities where homeowners have the most unpaid mortgages,” said the report. “Among the top 50 cities with the most unpaid mortgages, 18 are in The Golden State. A majority are located within the Los Angeles metropolitan area such as Fontana, Moreno Valley, Riverside, Corona, Ontario, Santa Clarita, Palmdale, Rancho Cucamonga, and the city of Los Angeles.”

Overall, 82.5% of Fontana homeowners have an outstanding balance on their mortgage, and less than one in five homeowners in Fontana have paid off their homes completely. According to the Census Bureau, more than one-third of Fontana homeowners are living beyond their means, as 38% of homeowners in Fontana spend more than 30% of their income on housing costs, a total above the national average of 27.4%. Fontana’s monthly housing costs average $2,236, 34% higher than the national average of $1,672 per month.

Rounding out the top five cities with the most unpaid mortgages:

#1. Fontana, California

• Homeowners with unpaid mortgages: 32,565
• Median years lived in home: Nine
• Median monthly housing costs: $2,236
• Percentage of homeowners with unpaid mortgages: 82.5%

#2. Gilbert, Arizona

• Homeowners with unpaid mortgages: 55,398
• Median years lived in home: Six
• Median monthly housing costs: $1,921
• Percentage of homeowners with unpaid mortgages: 79.2%

#3. Moreno Valley, California

• Homeowners with unpaid mortgages: 26,147
• Median years lived in home: 13
• Median monthly housing costs: $1,991
• Percentage of homeowners with unpaid mortgages: 78.9%

#4. Alexandria, Virginia

• Homeowners with unpaid mortgages: 24,232
• Median years lived in home: Seven
• Median monthly housing costs: $2,684
• Percentage of homeowners with unpaid mortgages: 77.8%

#5. Riverside, California

• Homeowners with unpaid mortgages: 39,744
• Median years lived in home: 13
• Median monthly housing costs: $2,061
• Percentage of homeowners with unpaid mortgages: 77.6%

No other city in America has more paid-off homes than Detroit, as 66.2% of homeowners in Detroit have completely paid off their homes, according to the Census Bureau. In contrast, only 38.7% of all homeowners nationwide have paid off their mortgages. Detroit also has one of the lengthiest median homeowner tenures in the nation, at 16 years.

Rounding out the top five cities with the most paid-off homes:

#1. Detroit

• Homeowners with paid-off mortgages: 85,409
• Median years lived in home: 16
• Percentage of homeowners with paid-off mortgages: 66.2%

#2. Brownsville, Texas

• Homeowners with paid-off mortgages: 19,989
• Median years lived in home: 14
• Percentage of homeowners with paid-off mortgages: 58.0%

#3. Pasadena, Texas

• Homeowners with paid-off mortgages: 15,773
• Median years lived in home: 15
• Percentage of homeowners with paid-off mortgages: 54.5%

#4. Birmingham, Alabama

• Homeowners with paid-off mortgages: 20,636
• Median years lived in home: 18
• Percentage of homeowners with paid-off mortgages: 50.7%

#5. Jackson, Mississippi

• Homeowners with paid-off mortgages: 14,491
• Median years lived in home: 18
• Percentage of homeowners with paid-off mortgages: 50.2%

For the study, housing data was analyzed from more than 14.8 million owner-occupied homes situated in the 170 most densely populated census-defined places, utilizing information sourced from the U.S. Census Bureau’s American Community Survey. The ranking of cities was determined by assessing the proportion of homeowners with mortgages and those without. Supplementary data for the study encompassed the median duration homeowners had resided in their homes, monthly median housing expenses, as well as the percentage of homeowners categorized as “house poor.” Homeowners who spend more than 30% of their household income on monthly housing costs are considered “house poor.” The Census Bureau defines monthly housing costs as the sum of payments for mortgages, deeds of trust, contracts to purchase, or similar debts on the property (including payments for the first mortgage, second mortgages, home equity loans, and other junior mortgages); real estate taxes; fire, hazard, and flood insurance on the property; utilities (electricity, gas, and water and sewer); and fuels (oil, coal, kerosene, wood, etc.).

Click here for more information on the Chamber of Commerce’s study.