Investment blog 24/7 Wall Street compiled a list of the top 10 states with the highest average mortgage debt, using data from Credit Karma. California came in at number one with an average of $313,749 in mortgage debt per person.
The list in its entirety is as follows, with the average amount of mortgage debt per person listed:
10. Nevada ($196,911)
9. Colorado ($198,117)
8. Connecticut ($211,516)
7. Virginia ($221,873)
6. Massachusetts ($224,661)
5. Washington ($225,581)
4. New Jersey ($236,017)
3. Maryland ($242,445)
2. Hawaii ($307,508)
1. California ($313,749)
A majority of the states made the list through a combination of high initial mortgages and sharp declines in home values. Seven of the top 10 saw home prices drop significantly during the recession. The value of some California properties dropped more than 30 percent during the recession; New Jersey and Maryland saw decreases of 7 percent and 10 percent respectively.
On the other hand, while home values dropped in those states, they also had low foreclosure rates. States like Illinois, Michigan and Florida — all with below-national average home values and high mortgage debt — have some of the highest foreclosure rates in the country.
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Economics