Key Details:
- According to the latest U.S. Census Bureau data, 40.3% of U.S. homeowners are mortgage-free, up from 39.8% in 2023 and 32.8% in 2010, and the highest share on record in this data series.
- 54% of the 35 million mortgage-free households are 65 or older.
- 64% of homeowners aged 65+ own their homes outright.
- Metro-level data ranges from 61.8% in McAllen, TX, to 26.4% in Washington, DC.
The share of U.S. homeowners who own their homes outright just hit a new milestone, and it’s not a small one.
According to ResiClub’s latest analysis of U.S. Census Bureau data, 40.3% of owner-occupied housing units are now mortgage-free.
That’s up from 39.8% in 2023 and marks the highest share recorded in this data series.
This trend reveals a shift in the financial profile of American homeowners, one that opens new opportunities for conversations around equity, downsizing, and lifestyle changes.
A Steady Climb Since 2010
The percentage of mortgage-free homeowners has been rising almost every year for more than a decade. In 2010, just 32.8% of U.S. owner-occupied homes had no mortgage attached.
Fast forward to today, and the number has climbed nearly 8 percentage points.
Why the steady climb? One of the biggest factors is demographics.
Older homeowners are much more likely to have paid off their mortgages, and the aging of America is making itself felt in the data.
- 54% of the 35 million U.S. mortgage-free homeowners are age 65 or older
- People aged 65 and up now make up 34.1% of all U.S. homeowners
- Among those 65 and older, 64% own their primary residences free and clear
As the Baby Boomer generation continues to age and Americans live longer overall, this share is expected to keep rising.
Where Mortgage-Free Living Is Most Common
Not all metros look the same when it comes to mortgage-free homeownership. Markets with lower home values and higher concentrations of older residents stand out with much higher percentages.
Here are the five metros with the highest percentage of mortgage-free homeowners among the 200 largest by population:
- McAllen, TX — 61.8%
- Brownsville, TX — 57.8%
- Beaumont, TX — 57.1%
- Kingsport, TN — 56.2%
- Longview, TX — 55.8%
Where Mortgage-Free Living Is Least Common
At the other end of the spectrum, younger, higher-priced markets show the lowest shares of mortgage-free households:
- Washington, DC — 26.4%
- Provo, UT — 27.0%
- Denver, CO — 27.1%
- Greeley, CO — 27.2%
- Ogden, UT — 28.8%
For agents working in these metros, mortgage-free households are less common, which makes spotting them and the opportunities they present more valuable.
The Bigger Picture: Equity and What Comes Next
This record-setting share of mortgage-free households reflects both financial progress and demographic realities.
For older homeowners, it represents decades of paying down debt. For the market overall, it signals a growing pool of equity-rich households who may look for ways to leverage that equity.
From the report:
“In the years ahead, ResiClub expects more equity products (such as reverse mortgages) to emerge and expand, as some older mortgage-free homeowners look to tap into the equity they’ve built without selling their homes.”
Owning a home free and clear may not be the norm for younger buyers, but it’s becoming the defining characteristic of millions of older homeowners.
