Why Seattle ranks near the bottom for free-and-clear homes
If purchasing a first home is the biggest milestone for homeowners, the second biggest is surely paying off the mortgage. But if you live in the Seattle area, you are a lot less likely to be hosting a mortgage-burning party anytime soon.
Census data shows that the Seattle metro area, which includes King, Pierce and Snohomish counties, ranks near the bottom in the share of free and clear homeowners. In 2024, out of about 968,000 owner-occupied housing units in our region, just under 299,000 were completely paid off. That pencils out to a mortgage-free rate of roughly 31%, the eighth-lowest rate among the 50 largest metro areas in the country.
Across these large metros, there is substantial variation in how Americans finance their domains. Two Florida metro areas topped the list: In the North Port-Sarasota area, nearly half - 49% - of homeowners were home debt-free, and Miami wasn't far behind at 45%. After those two sunny metros came three in the Rust Belt: Buffalo, N.Y. (44%), Pittsburgh, Pa. (44%), and Detroit (42%).
On the opposite end of the spectrum, Washington, D.C., had the lowest rate of free-and-clear homeowners at 26%. Denver was the second-lowest at 27%, while Raleigh, N.C., and Virginia Beach, Va., tied for third at 29%. San Diego was the fifth-lowest at 30%.
What explains this wide gap between the highest and lowest metros? It mostly boils down to two things: age demographics, housing affordability and residency longevity.
Metros with high free-and-clear rates generally attract large numbers of retirees, such as those in Florida, who often buy homes with cash in hand using equity from previous sales.
Furthermore, Rust Belt areas like Buffalo and Pittsburgh have older populations and lower home values, making it easier to pay off a 30-year mortgage more quickly or buy a home outright.
These areas also have slower population growth rates, meaning there will likely be fewer newcomers who bought their homes more recently and are in the early stages of their mortgages. For example, in the Buffalo area, the median year homeowners moved into their homes was 2009, according to census data. In the Seattle area, it was 2013.
Regions with low free-and-clear rates tend to be higher-cost-of-living metros characterized by astronomical real estate prices. Also, metros with younger workforces have a higher share of newer owners who typically carry a mortgage.
This helps explain why Seattle is near the bottom. First, there are the high home prices. Census data shows the median value for a Seattle metro home without a mortgage was $713,800 in 2024, while those with a mortgage hovered at $756,800. When carrying a loan of that size, it often takes decades to chip away at the principal.
Second, Seattle's tech economy draws a constant influx of younger, working-age professionals who are either first-time buyers or moving up the property ladder. Naturally, these younger owners carry the bulk of the region's home debt.
According to census data, there were about 498,000 homes owned by someone under age 55 in the Seattle metro - making up more than half of all owner-occupied homes - and very few were free of home debt.
Among homeowners under 35, only 12% owned their homes free and clear, and 14% of those aged 35 to 44 did. Even in the peak-earning 45-to-54 age bracket, just 20% of homeowners had submitted their final mortgage payment.
Even at retirement age, a large share of Seattle-area homeowners are still paying down their mortgages. For local householders aged 65 to 74, around 49% are free and clear, and that figure only hits 67% for those 75 and older.
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