How home equity has changed in every U.S. state since 2020—West Virginia ranks No. 1 for growth

Homeowners in West Virginia have experienced the nation's largest percentage growth in home equity since 2020, surging 450%, though their average equity amount remains the lowest among top gainers at $35,931. This significant appreciation, also prevalent in other affordable markets like Oklahoma (431% growth), is largely attributed to substantial home price increases and homeowners locking in low mortgage rates pre-rate hikes. Nationwide, average home equity has risen 142% to $112,430, boosting household net worth and potentially facilitating increased home equity lending, while Louisiana stands out as the sole state with negative equity at -22%.

Analysis

A Bankrate analysis using Zillow and Experian data from early 2020 to early 2025 reveals a significant divergence in U.S. home equity growth, driven by regional economic trends and interest rate dynamics. West Virginia leads the nation with a 450% surge in home equity, a trend mirrored in other low-cost markets like Oklahoma (431%) and Connecticut (297%). This outsized percentage growth is attributed to the confluence of rapid home price appreciation from a low base and homeowners securing low-rate mortgages before recent hikes. However, a critical distinction exists between percentage gains and absolute values; West Virginia's average equity is just $35,931, substantially below the new national average of $112,430, which itself is up 142% since 2020. In contrast, high-value states like California and Hawaii show lower percentage growth (79% and 62%, respectively) but possess far greater absolute equity ($348,196 and $436,850). The data also isolates Louisiana as a negative outlier, with a -22% decline in equity, which is linked to falling home prices, climate risks, and rising insurance costs.

Key Decisions for Investors

• Investors should analyze regional housing markets beyond national averages, as the outperformance in the South and Midwest suggests potential opportunities in sectors tied to the local wealth effect, such as regional banks and retailers.
• The negative equity performance in Louisiana highlights the increasing need to integrate climate and insurance-cost risk factors into valuation models for geographically concentrated assets like regional mortgage-backed securities or REITs.
• The nationwide rise in home equity, which has grown to an average of $112,430, expands the addressable market for home equity loans and lines of credit, potentially benefiting consumer lenders, though loan-to-value considerations will differ significantly between high-percentage-growth, low-absolute-value states and vice versa.