Study ranks debt among U.S. homeowners

Published: Apr. 1, 2019 at 8:58 AM CDT
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MEMPHIS, TN (WMC) - With mortgage rates slowly falling and the market friendlier to buyers than sellers, the free credit-score website WalletHub has released its 2019 Home Overleverage Report.

In order to determine where homeowners have the most unsustainable mortgage debts, WalletHub compared the median mortgage debt to the median income and median home value in more than 2,500 U.S. cities.

The lower the percentile rank, the less likely the average home in a city is overleveraged. Bartlett, TN, placed in the 7th percentile – which means the average home in Bartlett is overleveraged less than 93% of the homes in the U.S.

Memphis came in at the 31st percentile. For comparison, Nashville was in the 86th percentile, and Knoxville was in the 84th percentile.

Most Overleveraged Cities

McKees Rocks, PA

Ewa Beach, HI

Bell Gardens, CA

Kahului, HI

Lahaina, HI

Santa Ana, CA

Fallbrook, CA

East Palo Alto, CA

Willis, TX

Dumfries, VA

Key Stats

Inkster, Michigan, has the lowest mortgage debt-to-income ratio, 115 percent, which is 8.8 times lower than in Ewa Beach, Hawaii, the city with the highest at 1,013 percent.

Bronxville, New York, has the lowest mortgage debt-to-house value ratio, 17 percent, which is 15.5 times lower than in McKees Rocks, Pennsylvania, the city with the highest at 264 percent.

Inkster, Michigan, has the lowest median mortgage debt, $40,747, which is 18.8 times lower than in Beverly Hills, California, the city with the highest at $765,424.

Scarsdale, New York, has the highest median income, $205,625, which is 11.3 times higher than in Lake Placid, Florida, the city with the lowest at $18,239.

To read the report, and see where other cities across the U.S. ranked, click here:

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