Analysis: States with the Highest and Lowest Homeownership Profitability
In the last five years, the landscape of home equity stakes has shifted significantly across the United States. West Virginia tops the list with a staggering 450% increase in average home equity, followed by Oklahoma (431%), Connecticut (297%), Kansas (234%), and Illinois (217%) rounding out the top five[1][3][5].
Illinois, with an estimated home equity growth rate of 217% between 2020 and 2025, takes the fifth spot[2]. One of two Midwestern states to make the top five, Kansas, has also seen impressive growth[1].
Nationwide, the average home equity has risen 142% since 2020, with a 4.2% increase in the past year[1]. However, not all markets have fared equally.
In contrast, Washington, D.C. has experienced a 38% decrease in average home equity, despite a slight increase in home prices[3][4][5]. The District's average home equity dropped from $172,628 in 2020 to $106,606 in 2025[3][4][5].
Other states with high equity growth (over 400%) include Oklahoma (second place) and Connecticut (nearly 300%) despite Connecticut’s high home prices and mortgage debt[1][5]. States showing the lowest growth in home equity tend to be Western states with slower home price appreciation and higher mortgage debt, including Alaska, Colorado, Hawaii, Oregon, and Utah[2].
Western states have posted some of the least average home equity growth. Alaska, one of two Western states in the bottom five with the least average equity growth since 2020, has gains of only 17%. Hawaii, New Hampshire, California, New Jersey, and Massachusetts experienced the largest dollar increases in average home equity, with Hawaii leading at $167,791[2].
Connecticut has the highest home prices ($426,752) and the highest mortgage debt ($260,096) as of the first quarter of 2025[2]. Average mortgage debt in Kansas (2025) was $173,204, 33% lower than the national average[2].
Collectively, tappable equity among mortgage-holders is $11.5 trillion, the highest in five years[2]. Despite having the highest average home prices among the five regions with the least equity growth, Washington D.C. has seen only a 2.8% increase in home values since 2020[2].
High mortgage balances and slower home price appreciation have frozen equity growth for many homeowners across Alaska. Slower home price growth, climbing insurance costs, and growing climate risks/extreme weather incidents are likely to blame for the decline in Louisiana's average home equity[2].
The average home prices in West Virginia are the lowest nationwide, averaging $171,861[2]. Oklahoma has some of the most affordable home prices in the country, ranking the fourth-lowest for average home values[2].
[1] Data from CoreLogic's Equity Report [2] Analysis by Realtor.com [3] Data from ATTOM Data Solutions [4] Data from Zillow Research [5] Data from the Federal Housing Finance Agency
- Investing in real estate, particularly in states like Kansas, may offer high returns for home equity, as it has shown impressive growth despite being a Midwestern state, with its average home equity growing by 234% since 2020.
- In contrast to states with high home equity growth, such as West Virginia and Oklahoma, business prospects for financing in Western states like Alaska, Colorado, Hawaii, Oregon, and Utah might be less favorable, due to their slower home price appreciation and higher mortgage debt, which have contributed to lower equity growth.
