50 Cities With the Highest Mortgage Balances in 2025 — 23 Are in California

Experian data reveals a significant increase in U.S. cities with average mortgage balances exceeding $1 million, reaching 67 in 2025, up from 23 in 2023. California dominates this list, accounting for nearly half of the top 50 locations, while Florida also features prominently, including the top five cities, underscoring the escalating housing costs and substantial mortgage burdens concentrated in these affluent regions.

Analysis

Experian data reveals a significant escalation in high-value mortgage markets, with 67 U.S. cities reporting average mortgage balances exceeding $1 million in 2025. This represents a substantial increase from 47 cities in 2024 and 23 in 2023, indicating a rapid expansion of ultra-expensive housing markets. The trend underscores rising housing costs nationwide, impacting affordability.

Geographically, California accounts for nearly half of the top 50 cities with the highest average mortgage balances, while Florida features prominently, including all of the top five locations. This concentration in specific, affluent coastal regions suggests localized demand and wealth accumulation are driving these elevated mortgage burdens. The high average home values in these areas, such as Atherton, CA ($7.54M), further illustrate the premium nature of these markets.

The observed increase in mortgage balances aligns with broader reports of climbing costs across the country, indicating inflationary pressures within the housing sector. While the article's sentiment is mildly negative, reflecting concerns over affordability, the market impact score of 0.25 suggests a moderate, rather than severe, immediate market reaction. This data provides critical insights into regional housing market dynamics and wealth distribution.

Key Decisions for Investors

• Investors should closely monitor real estate market trends in high-cost regions like California and Florida, as sustained high mortgage balances could indicate both robust demand and potential affordability ceilings.
• Given the increasing prevalence of large mortgage balances, investors with exposure to mortgage-backed securities (MBS) should evaluate the concentration and credit quality of underlying loans in these affluent, high-value markets.
• The article highlights climbing costs and inflationary pressures in housing; therefore, investors may consider inflation-hedging strategies or assets that benefit from rising property values in select, resilient markets.