18% of California households enjoy mortgage-free living

An analysis of the 2023 Census Bureau housing data reveals that only 18% of California's households own their homes outright without a mortgage, a stark contrast to the national average of 26%. This places California among the states with the lowest rates of mortgage-free living, second only to Washington D. C. Additionally, 38% of the state's homeowners have mortgages, while a significant 43% of residents are renters, indicating the pervasive financial pressures in California's housing market. Interestingly, even mortgage-free households face substantial costs, with median monthly expenses of $834, which is 33% higher than the national average of $629.

Over the past four years, these expenses have surged by 34%, highlighting the rising cost of homeownership in California. Furthermore, 17. 8% of mortgage-free households allocate over 30% of their income to housing costs, reflecting a growing financial burden. This situation underscores the difficulty Californians face in achieving true financial independence, as many opt to retain mortgages to manage other high living expenses. The article provides a sobering look at the real estate challenges confronting residents in the Golden State.