Cookies on the this website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to PropertyWire?

Welcome, and thank you for visiting our website.

PropertyWire is the leading publication for property investors and industry professionals interested in the world of international property investment.

Our aim is to give you intelligent commentary and analysis on the world of retail and commercial real estate.
If you've enjoyed what you've read so far why not sign up for our FREE property alert and online magazine PropertyWire Confidential.

Every week the PropertyWire team sends out a hard-hitting newsletter packed with news and analysis of the top stories plus the best investment opportunities on the market. We always look at the bigger picture like the Euro Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Thu
Apr 17th
Lost Password? Register
Home arrow News arrow North America arrow Almost 30% of US home owners have no mortgage, data shows

Almost 30% of US home owners have no mortgage, data shows

Friday, 11 January 2013
Image
Almost 21 million Americans, or 29.3% of home owners, own their homes outright, unencumbered by a mortgage, according to the most recent figures to be analysed by Zillow.

Taking figures for the third quarter of 2012, Zillow found that 20.6 million home owners nationwide own their homes free and clear of mortgage debt.

Among the nation's 30 largest metro areas included in the study Pittsburgh with 38.6%, Tampa at 33.2%, New York at 29.7%, Cleveland at 29.4% and Miami at 28.9%, had the highest percentage of free and clear home owners.

Washington D.C. with 15.5%, Atlanta with 17.7%, Las Vegas with 18.3%, Denver with 18.5% and Charlotte with 20% had the lowest percentage.

A number of elements influence the percentage of free and clear homeowners in a given area, including median home values. Zillow found that areas with lower home values generally have higher outright home ownership rates, as smaller loan amounts are easier to pay back more quickly.

Demographic factors including the age and credit rating of primary borrowers also influence the rates. Zillow found that 65 to 74 year-olds are most likely to be without a mortgage, accounting for 20.5% of the total, followed by 74 to 84 year olds at 17.9%. This is attributed to the fact that the longer someone owns a home, the longer they have to pay off their mortgage.
However, the firm also found that 34.5% of 20 to 24 year-old home owners are free of mortgages.

Among home owners who own their homes outright, 44% have a high VantageScore, representing their credit rating, between 800 and 900. Only 15.5% of home owners with the highest credit rating of 900 990 had no mortgage.

So far we have used our unique data on how much home owners owe on their homes primarily to identify underwater and delinquent groups of homeowners,ђ said Zillow chief economist Stan Humphries.

But looking at those home owners who are free and clear is important, too. Home owners unencumbered by a mortgage may be more flexible than indebted home owners, and therefore more apt or willing to list their homes or enter the market for a new property. By determining where these homeowners are located, we can also gain insight into potential inventory and demand in those areas, as well,ђ he explained.

Zillow's analysis incorporates mortgage data from TransUnion, a global leader in credit and information management, covering more than 800 metro areas, 2,100 counties and 21,900 ZIP codes nationwide.

To calculate the free and clear home ownership rate, it computed the number of overall home owners and number of home owners with no outstanding mortgage debt by location and demographics. The research included investor and rental homes.

This story relates to: Property  US  USA property  lending  mortgage  property market  [SEE ALL]


BOOKMARK THIS PAGE (What is this?)     Digg!Reddit!Del.icio.us!Google!Live!Facebook!StumbleUpon!Newsvine!Furl!Yahoo!

 
More Recent News
Earlier News
To see all the latest news articles in our monthly online magazine, Property Wire Confidential, sign up free here






West Tower

West Tower

Car park

home rental guide

West Tower

John Charles

Buy-to-let

North America: Top Headline

US sellers advised to spruce up the outside of their properties for a fast saleUS sellers advised to spruce up the outside of their properties for a fast saleHome owners in the United States putting their properties on the market should focus on making them look good on the outside rather than undertake large scale renovations, a survey has found.

Search for Properties:

Feature story

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Company news

LOOK TO THE UK FOR AN EDUCATED PROPERTY INVESTMENT

In the past year, overseas investment in the UK has been steadily rising in all markets according to official figures. For example, the UK Trade & Investment (UKTI) reported in July 2013 that the UK is the leading European destination for foreign direct investment (FDI).

Finance Update

Buy to let lifetime tracker products launched

Specialist buy to let mortgage lender, Paragon Mortgages, has launched a range of lifetime tracker products along with refreshing the rest of its range of fixed and tracker buy to let mortgages.

Features

Student accommodation investment check List

It’s the UK’s strongest asset class, but are all student accommodation properties good investments? This is the comprehensive list of what to watch out for when buying student property.

 

Newsletter

Subscribe to our weekly newsletter and stay updated on the property market trends.
Subscribe now >>

Subscribe to our North American property and real estate news feed (RSS)