Vermont Leads the Nation in Mortgage Debt

Vermont might be small, but it’s making big waves when it comes to mortgage debt. A recent study by WalletHub found that from Q3 2024 to Q4 2024, the Green Mountain State added the most mortgage debt in the country, at a 2.63% increase in the average balance, bringing it to $208,730. 

I didn’t think that seemed like a huge deal at first glance but then I noticed that no other state saw an increase above 2%. In fact, 23 states actually saw their mortgage debt decrease during the same period. So, why the surge?

First, Wallethub states that Vermont residents already carry a large amount of mortgage debt, with their average monthly payments being $1,666. And with housing prices continuing to climb (in most areas) and interest rates staying relatively high, it’s not a big surprise people are taking on more debt just to keep up. Additionally, Vermont's already high property taxes only add to the financial strain, meaning a lot of homeowners are likely stretching their budgets further than before.

But is this a sign of trouble, or just a temporary blip? Some might argue that the increase in mortgage debt reflects the broader housing market struggles, with prices outpacing wages. However, others might see it as a sign of economic confidence — people are still willing to invest in homes, even with the extra burden. Either way, it's clear that Vermont's real estate market is putting the pressure on homeowners.

It’s also worth noting that in addition to Vermont, other New England states also saw significant increases in mortgage debt with Massachusetts ranking 3rd and Maine coming in 8th.