Home Equity Growth Varies Across the U.S., Bankrate Reports
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Certain parts of the country have seen higher home equity than others since 2020, according to a new study from Bankrate, New York.
Home equity has increased by an average of 142% nationwide over the past five years, led by states in the South and Midwest, Bankrate found. In West Virginia, average home equity growth has more than quadrupled, growing by 450% since 2020, the highest overall in Bankrate’s study.
Bankrate estimated the amount of equity gains by comparing the average home value against the average mortgage balance using first-quarter 2025 Zillow and Experian data.
“It’s no surprise that home equity values have risen since 2020, given the rapid appreciation in home prices across the country,” Bankrate Financial Analyst Stephen Kates said. “What is surprising, however, is which states have benefited the most. While absolute gains favor already high-priced markets like Hawaii, many of the states seeing the highest percentage increases have been flying under the radar.”
West Virginia topped the list of states where average home equity has grown the most over the last five years. The state features the lowest home prices nationwide, averaging $171,861, as well as the lowest average mortgage debt among homeowners with a mortgage balance ($135,930) as of Q1 2025. Oklahoma took the number-two spot for average equity growth over the last five years and is the only other state with a gain of over 400%. Connecticut ranked third, the only Northeastern state in the top 10, seeing home equity grow nearly 300% since 2020 despite the state having high home prices ($426,752) and mortgage debt ($260,096) as of Q1 2025.
Notably, in terms of dollar gains, Hawaii ($167,791), New Hampshire ($158,684), California ($153,843), New Jersey ($148,791) and Massachusetts ($148,735) have experienced the largest increases in average home equity since 2020. However, their five-year percentage gains lag behind those in the South and Midwest, because average home equity in these states was substantially higher in 2020.
“Many once-hot markets are starting to cool, with home equity values stagnating or declining between 2024 and today,” Kates noted. “D.C. and Louisiana stand out as the only two markets with home equity losses. Both locations did see average home prices rise since 2020, but mortgage debt rose much faster. The average home owner in D.C. and Louisiana have 17% and 15% equity in their homes today, down from 29% and 21% in 2020.”
