Sunbelt states that saw rising populations during the pandemic are now grappling with surging household debt while their Midwest neighbors are handling debt significantly better, according to the newly published “The U.S. States Most Impacted By Household Debt 2023” from the fintech lending platform NationalBusinessCapital.com.
How did this happen? The report found explosive growth in states including Florida, Utah, Arizona, Colorado and Nevada resulted in to elevated mortgage and credit card burdens, particularly for lower-income households. In contrast, households in the Rust Belt, interior South, and Plains states showed more restraint in credit card spending, a result of lower housing demand and prices.
“As people move to sunnier, high growth regions, they’re taking on more debt,” says Brian Chevalier-Jordan, chief marketing officer at NationalBusinessCapital.com. “We’ll see whether trading the cold for debt is worth it over time.”
Still, the one unifier across the country is household debt, which surpasses income in nearly every state except New York.
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This raises the questions, what was the price of homes in each area at the time they were acquired? How long have these debt holders been growing their equity? Is this comparison really apples to oranges?
Statistics don’t lie, but statisticians choose which statistics to share.