Nearly 4 in 10 U.S. Homeowners Owned Their Homes Mortgage-Free in 2024

Nearly 40% of U.S. homeowners owned their homes outright in 2024, continuing a long-term trend that has been building across the country, according to new data from the U.S. Census Bureau.

The growing share of mortgage-free homeowners reflects how higher interest rates and rising home prices have changed housing behavior. Instead of moving or refinancing, many homeowners are staying put and paying down existing loans, especially in areas where affordability pressures are highest.

Mortgage-Free Ownership Reaches a New High

Data from the Census Bureau’s 2024 American Community Survey (ACS) five-year estimates shows that the share of owner-occupied homes without a mortgage rose to 39.4% in the 2020–2024 period, up from 34.4% between 2010 and 2014.

That increase occurred in every state and the District of Columbia, highlighting a nationwide shift rather than a regional one.

Housing analysts say elevated mortgage rates and higher home values have discouraged homeowners from moving, refinancing, or taking on new debt. For many households, holding onto an existing home and eliminating monthly mortgage payments has become a safer financial choice.

Big Differences Across States

The share of mortgage-free homeowners varies widely by state.

• Maryland had one of the lowest rates, with about 29% of homes owned outright
• West Virginia had the highest share, at 53.9%
• The District of Columbia reported the lowest overall share at 24.3%

Some states posted notable growth over the past decade. In New Mexico, the share of mortgage-free homes climbed from 41.5% to 48.5% between 2014 and 2024. Meanwhile, North Dakota saw much slower growth, with an increase of just 1.5 percentage points over the same period.

Rural Counties Lead, Urban Areas Catch Up

At the county level, the gap between rural and urban areas remains clear.

According to the Census Bureau:

• More than 2,200 counties had mortgage-free ownership rates above 40% in 2024
• 493 counties, many near large metro areas and along the coasts, had rates below 40%
• 446 counties were statistically close to the 40% mark

Rural counties tend to have higher mortgage-free ownership due to lower home prices, longer ownership tenure, and aging populations. Urban counties generally show lower outright ownership, but many have experienced faster growth in recent years.

Southern Metro Areas See Strong Gains

Metro counties across the South posted some of the largest increases in mortgage-free ownership.

In Chattahoochee County, Georgia, the share of homeowners without a mortgage jumped nearly 19 percentage points, reaching 69% by 2024. Other counties in Georgia, Alabama, Kentucky, Texas, North Carolina, and South Carolina also ranked among the fastest-growing.

Several counties outside the South also recorded strong gains, including areas in New Mexico, Illinois, Kansas, and Nebraska.

Not All Counties Moved Higher

While most areas saw increases, a small number of counties experienced declines.

For example, Camden County, North Carolina, saw the share of mortgage-free homeowners fall by about nine percentage points over the decade. Overall, only 49 counties nationwide posted statistically meaningful declines, while nearly 1,600 counties recorded clear growth.

In the Northeast, growth was widespread, with 180 counties showing significant increases and none reporting declines. In the South, more than 650 counties saw increases, while many others remained stable.

Why This Trend Matters

The rise in mortgage-free homeowners points to a housing market shaped by caution and long-term ownership. High borrowing costs have reduced mobility, while many households especially older owners are prioritizing stability, lower monthly expenses, and protection from rising rates.

As long as mortgage rates stay elevated, this trend is likely to continue, keeping more homes off the market and limiting housing supply in many regions. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.