Households in the West Have the Most Debt — Experts Explain Why
Credit, like a mortgage, a car loan or a student loan, can often help individuals and families get ahead in America. But debt isn't distributed evenly throughout the country, and when households accumulate too much debt, it can be difficult to keep up with payments.
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Households in the West have the most delinquent debt. According to credit data from August 2023 collected by the Urban Institute, numerous western states have debt in collection that exceeds the national rate of 22%. For example, Nevada's delinquent debt rate is 27%, Arizona's rate is 23% and New Mexico's rate is 26%.
Several factors contribute to the fact that western states have higher amounts of debt than the rest of the country, and GOBankingRates spoke with experts to unpack this trend.
Also find out how much a $100,000 salary looks like after taxes in the West.
According to Statista, the average sales price of a new home in the United States was $512,200 in 2024, but home prices can be much higher in the West.
According to Kiplinger, in San Jose, California, which has a median household income of $153,202, the average home price is $1,923,230. Similarly, homes in Orange County, California average $1,509,257, while the area's median household income is $110,042. Arizona also had an average home price of $1,160,346, while the median household income is $66,264.
'In my work helping customers manage credit obligations, I've observed that mortgage debt in these regions typically consumes 40% to 50% of household income, compared to 25% to 35% in the Midwest,' explained Kevin Shahnazari, founder and CEO of FinlyWealth.
Housing scarcity also impacts the housing costs and the debt patterns. According to Shahnazari, strict zoning laws, environmental regulations and geographic limitations, like mountains and coastlines, contribute to housing shortages, which drive up prices and prompt homeowners to assume larger mortgages.
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Melanie Musson, a finance expert with InsuranceProviders.com, explained that the growth the West is experiencing is partially due to an influx of people moving into the area.
'Many of the people who live in cities and towns didn't grow up there,' she explained. 'They're coming into the area with outside money. Instead of people growing up in the area and settling it organically, there's forced growth from outsiders moving in.'
Such growth is further contributing to rising housing costs and household debt.
Many residents of Western states face these high home prices on limited incomes. Shahnazari explained that high-income tech jobs are present in the Western market, but these opportunities tend to be concentrated in urban centers.
'The broader region includes many rural and service economy areas where wages stagnate despite rising living costs,' he said. 'Nevada, Idaho and parts of Oregon exemplify this pattern: Residents face Western region costs but with income levels closer to national averages.'
According to Musson, many businesses in the West face high operating and overhead costs. If they pay employees salaries needed to make a living in the area, the businesses can't stay in operation.
'So, in order to stay in business, companies have to pay employees lower wages so the business can pay for rent and stay solvent,' she said.
Households in the West also feature an unusually high cost of living. According to the World Population Review, the 2025 cost of living in California is 144.8, meaning it's 44.8% higher than the national average of 100. Washington's cost of living is 114.2, Oregon's is 112 and Arizona's is 111.5.
Since the cost of living encompasses grocery, housing, utility, transportation and health costs, it's easy to see how paying down debt on top of covering everyday costs can be challenging.
'Higher cost of living is the number one reason debt is so high in the West,' explained Musson. 'Lower incomes coupled with higher cost of living make the problem even worse.'
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This article originally appeared on GOBankingRates.com: Households in the West Have the Most Debt — Experts Explain Why
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Beatrice Dupuy and Rachel Leathe in New York contributed. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
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Malian broadcaster ORTM confirmed that the West African nation's army took delivery of new military equipment. AP analysis of its video and images filmed by the Malian blogger in the same spot as the January delivery identified a broad array of Russian-made hardware, including 152 mm artillery guns and other smaller canons. AP also identified a wheeled, BTR-80 armored troop carrier with radio-jamming equipment, as well as Spartak armored vehicles and other armored carriers, some mounted with guns. The shipment also included at least two semi-inflatable small boats, one with a Russian flag painted on its hull, as well as tanker trucks, some marked 'inflammable' in Russian on their sides. The military officials who spoke to AP said they believe Russia has earmarked the most potent equipment — notably the artillery and jamming equipment — for its Africa Corps, not Malian armed forces. 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But after Wagner forces mutinied in Russia in 2023 and their leader, Yevgeny Prigozhin, was killed two months later in a suspicious plane crash, Moscow tightened its grip. Russian military operations in Africa were restructured, with the Kremlin taking greater control through Africa Corps. It is overseen by the commander of Unit 29155, one of the most notorious branches of Russia's shadowy GRU military intelligence service, according to the European Union. Unit 29155 has been accused of covertly attacking Western interests for years, including through sabotage and assassination attempts. The EU in December targeted Unit 29155 Maj. Gen. Andrey Averyanov with sanctions, alleging that he is in charge of Africa Corps operations. 'In many African countries, Russian forces provide security to military juntas that have overthrown legitimate democratic governments, gravely worsening the stability, security and democracy of the countries,' the EU sanctions ruling said. These operations are financed by exploiting the continent's natural resources, the ruling added. The Russian Ministry of Defense didn't immediately respond to questions about Averyanov's role in Africa Corps. Africa Corps recruitment Researchers and military officials say the flow of weapons from Russia appears to be speeding Africa Corps' ascendancy over Wagner, helping it win over mercenaries that have remained loyal to the group. Africa Corps is also is recruiting in Russia, offering payments of up to 2.1 million rubles ($26,500), and even plots of land, for signing a contract with the Ministry of Defense, plus more on deployment. Within days of the latest equipment delivery, Wagner announced its withdrawal from Mali, declaring 'mission accomplished" in a Telegram post. Africa Corps said in a separate post that it would remain. The changeover from Wagner to Africa Corps in Mali could be a forerunner for other similar transitions elsewhere on the continent, said Julia Stanyard, a researcher of Russian mercenary activity in Africa. 'Bringing in this sort of brand-new sophisticated weaponry, and new armored vehicles and that sort of thing, is quite a bit of a shift,' said Stanyard, of the Switzerland-based Global Initiative Against Transnational Organized Crime. Armed groups in Mali have inflicted heavy losses on Malian troops and Russian mercenaries. The al-Qaida linked group JNIM killed dozens of soldiers in an attack this month on a military base. Insurgents also killed dozens of Wagner mercenaries in northern Mali last July. Some of the latest hardware could have been shipped over specifically in response to such attacks, military officials said. They said the jamming equipment, for example, could help defend against booby traps detonated using phone signals. Russian escort's red flags The latest convoy attracted attention because a Russian Navy warship, the Boykiy, escorted the ships after they set off in April from Russia's Kaliningrad region on the Baltic. Last October, in what's considered a hostile act, the Boykiy's radar systems locked onto a French Navy maritime surveillance plane on patrol against suspected Russian efforts to sabotage underwater cables, according to military officials. The convoy included a third sanctioned Russian cargo ship, the Siyanie Severa. It continued onward as Baltic Leader and Patria unloaded in Conakry, docking in Bata, Equatorial Guinea. Satellite imagery from May 29 shows trucks lined up on the dock as the ship unloaded. The AP could not verify whether the cargo included weapons or the ultimate destination for the shipment, though Wagner has maintained a strong presence in the nearby Central African Republic. ___ Leicester reported from Paris and Biesecker from Washington. Beatrice Dupuy and Rachel Leathe in New York contributed.
