Which States Have the Most Home Equity? Home Equity Values State-By-State

A suburban neighborhood.

Canva

Written by: Dom DiFurio

Many American homeowners saw their wealth balloon over the last two years as the U.S. real estate market experienced an unprecedented frenzy.

Homeowners living in less populous western states, in particular, saw their housing values soar as remote work allowed many workers the flexibility to move further from urban centers and acquire more space at more affordable prices.

In Idaho, for example, home prices rose a whopping 41% between the third quarters of 2020 and 2022, respectively, according to Federal Housing Finance Agency data.

Portland Real Estate examined real estate data platform ATTOM's quarterly home equity report to see which states have the largest share of equity-rich homeowners in the third quarter of 2022. In the case of a tie, the raw number of homeowners was used.

Even as growth in home prices has slowed in the second half of this year, most American homeowners still saw home equity increase. Households are considered equity-rich, or "house-rich," when the property owner's outstanding mortgage balance is half or less than the home's estimated market value. Nationally, about 48.5% of homes with mortgages were considered equity-rich in the third quarter, the 10th straight quarter of gains.

From 2002 to 2022, Americans have seen the portion of their wealth that's tied up in residential real estate collectively grow by $20 trillion—an upward trend line that grew steeper in 2020 and 2021, according to the Federal Reserve.

Many of the most equity-rich homeowners are located on the West Coast, while the Midwest and South have the fewest. In today's high-interest-rate environment, homeowners have limited routes for tapping the equity they've built up in their homes. Home equity lines of credit, or HELOCs, rose in popularity earlier this year but could become less attractive as interest rates climb higher.

Discover Homes for Sale in Portland

Earn guaranteed cash offers on your property and explore a wide selection of homes for sale in Portland, Oregon.

Share of "Equity-Rich" Homeowners by State

RankStateShare of equity-rich homeownersTotal equity-rich homeowners
51 Louisiana 24.5% 146,151
50 Illinois 26.3% 644,018
49 Alaska 26.7% 33,541
48 West Virginia 29.3% 38,435
47 North Dakota 30.9% 34,985
46 Iowa 31.1% 202,924
45 Mississippi 31.5% 45,462
44 Maryland 31.5% 461,131
43 Kansas 34.0% 122,784
42 Delaware 34.2% 76,696
41 Oklahoma 34.6% 214,292
40 Virginia 34.9% 603,296
39 Connecticut 35.5% 293,288
38 Wyoming 35.7% 33,039
37 Arkansas 36.6% 155,525
36 Washington DC 36.6% 39,577
35 Ohio 37.6% 859,318
34 Missouri 38.1% 409,025
33 Alabama 38.2% 248,445
32 Kentucky 38.4% 238,027
31 Pennsylvania 38.7% 977,695
30 Minnesota 39.1% 413,576
29 New Jersey 40.2% 742,225
28 Nebraska 40.9% 143,265
27 South Dakota 41.8% 20,200
26 Wisconsin 42.4% 452,784
25 Michigan 44.0% 814,323
24 Indiana 46.2% 527,123
23 New Mexico 46.3% 150,080
22 New York 48.2% 1,090,860
21 South Carolina 48.8% 431,314
20 Georgia 50.7% 959,655
19 Montana 51.5% 53,671
18 Rhode Island 53.4% 122,706
17 North Carolina 54.0% 995,545
16 Massachusetts 54.3% 838,201
15 Oregon 55.0% 417,557
14 New Hampshire 55.1% 157,349
13 Colorado 55.4% 739,926
12 Nevada 55.8% 348,239
11 Texas 56.1% 2,507,257
10 Tennessee 57.1% 748,126
9 Maine 57.5% 153,431
8 Hawaii 59.0% 153,703
7 California 60.6% 4,015,264
6 Washington 61.0% 998,944
5 Utah 62.0% 385,344
4 Florida 62.8% 2,709,062
3 Arizona 63.4% 926,115
2 Idaho 65.8% 244,597
1 Vermont 75.9% 14,036

Starter Homes for Sale

Find an up-to-date collection of starter homes for sale in Portland, Oregon including important information such as property prices, days on the market, square footage and more to start building equity in your own home today.

Post a Comment