As of 2023, roughly 40% of all U.S. homeowners own their homes free and clear of any mortgage or lien. While this is a national average that includes both single-family and multi-family residences, available data does not consistently break down this statistic by the number of units per property type. However, this trend has been rising since 2010, with factors like high home values and focused mortgage repayment contributing to the increase.
National statistics
- Percentage: Approximately 40% of all owner-occupied housing units are mortgage-free.
- Number of homes: This translates to over 30 million homes.
- Historical trend: The percentage of mortgage-free homes has been increasing, reaching a new high in recent years, up from 32.8% in 2010.
Factors influencing the trend
- Rising home values: The significant increase in home prices over the past decade has given many homeowners more equity, making it easier to pay off their loans.
- Mortgage repayment: Homeowners are increasingly focused on paying down their mortgages faster.
- Age of homeowners: A significant portion of mortgage-free households are older, with 54% of them being age 65 or older, as many of these homeowners have paid off their mortgages over time.
Differentiating by property type
- Available data generally analyzes “owner-occupied housing units” rather than separating single-family from multi-family residences.
- Therefore, the 40% figure is a national average across all residential property types, and a specific, separate statistic for the percentage of multi-family units that are mortgage-free is not readily available.
Sources
https://finance.yahoo.com/news/over-30-million-us-homes-134300730.html
https://www.census.gov/programs-surveys/acs/news/updates/2023.html
