Over the past two decades, 11 million more U.S. households have paid off their mortgages, according to the Census Bureau’s American Community Survey. That’s good news for retirement readiness among public employees. But the story isn’t all positive—the majority of homes are still owned with mortgages, and that reality underscores the financial pressures trustees and administrators must keep in mind as we plan for the future of our systems.

The Story in the Data

The Census Bureau’s 20-year review of housing changes offers a clear picture of shifting homeowner dynamics:

• Owned with mortgage:50,462,973 households in 2005 vs. 51,697,973 in 2024, a modest increase of about 1.2 million.
• Owned without mortgage: 23,856,009 in 2005 vs. 34,937,533 in 2024, a striking increase of 11.1 million

Taken together, these numbers paint a mixed picture. More households are aging into retirement without the burden of a mortgage, which means more stability on fixed incomes. At the same time, most homeowners still carry mortgages, keeping housing affordability at the center of retirement planning conversations.

Why It Matters to Trustees and Administrators

• Member Readiness: Funds can use this data as a reminder to emphasize retirement education. Helping members understand the importance of managing debt before retirement will pay dividends in their long-term security.

• Investment Outlook: Real estate trends shape the broader economy and pension portfolios. A rise in mortgage-free households can support stronger consumer spending, while higher mortgage loads and rents signal continuing affordability challenges. Both have implications for funds with real estate holdings.

• Policy Pressures: Housing stress doesn’t stop at the household level. It can ripple into wage negotiations and local budgets, which ultimately affect pension funding. Trustees should be mindful of how these issues overlap.

The Takeaway

The American Community Survey reminds pension fund managers that retirement security isn’t just about pension checks—it’s also about what members pay to keep a roof over their heads. As trustees and administrators, you should watch these housing trends just as closely as you monitor the markets. A stronger understanding of your members’ financial realities helps you make better decisions for the systems you serve.

About the Author: Allen Jones is the director of communications and event marketing for TEXPERS. He joined the Association in 2017. Before TEXPERS, he worked in the news media industry, producing content for newspapers, magazines, and online publications and leading newsrooms as an editor and publications manager. [email protected]   

FOLLOW TEXPERS ON FACEBOOK, X, THREADS, AND LINKEDIN FOR THE LATEST NEWS ABOUT TEXAS' PUBLIC PENSION INDUSTRY. 

Editor’s Note: This article was prepared with the assistance of artificial intelligence tools to support research, fact-checking, and formatting. Final content decisions, including writing, editing, and publication, were completed by TEXPERS staff.