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The United States has never seen a bigger pile of wealth sitting in homeowner equity than we do now. Homeowners hold nearly $18 trillion in equity, with more than $11.7 trillion of tappable equity.
Where people live has a big impact on how much equity they can borrow. The average home value across the United States is $371,774, but this varies greatly from $182,704 in West Virginia to $836,741 in Hawaii.
I've been helping small to mid-size business owners find capital for over 15 years, and I see many miss out on potential capital using their home equity.
Below, I'll go over each of the 50 states and D.C., ranked by home equity.
| Rank | State | Average home value | Average mortgage balance | Home equity |
|---|---|---|---|---|
| 1 | Hawaii | $836,741 | $423,345 | $413,396 |
| 2 | Massachusetts | $672,867 | $330,666 | $342,201 |
| 3 | California | $775,549 | $457,540 | $318,009 |
| 4 | New Jersey | $584,681 | $299,747 | $284,934 |
| 5 | New Hampshire | $522,944 | $239,014 | $283,930 |
| 6 | Rhode Island | $517,078 | $242,807 | $274,271 |
| 7 | Washington | $603,303 | $365,729 | $237,574 |
| 8 | Maine | $424,107 | $186,674 | $237,433 |
| 9 | Montana | $476,115 | $253,589 | $222,526 |
| 10 | New York | $525,947 | $303,949 | $221,998 |
| 11 | Vermont | $402,017 | $184,762 | $217,255 |
| 12 | Utah | $541,692 | $324,566 | $217,126 |
| 13 | Idaho | $482,199 | $267,687 | $214,512 |
| 14 | Oregon | $504,432 | $295,168 | $209,264 |
| 15 | Colorado | $543,435 | $353,377 | $190,058 |
| 16 | Connecticut | $455,424 | $267,931 | $187,493 |
| 17 | Delaware | $412,252 | $230,027 | $182,225 |
| 18 | Wisconsin | $342,279 | $177,765 | $164,514 |
| 19 | Maryland | $436,104 | $294,424 | $141,680 |
| 20 | Arizona | $422,822 | $283,115 | $139,707 |
| 21 | Nevada | $448,215 | $310,217 | $137,998 |
| 22 | Minnesota | $356,887 | $219,491 | $137,396 |
| 23 | Alaska | $400,659 | $273,785 | $126,874 |
| 24 | Wyoming | $372,526 | $248,390 | $124,136 |
| 25 | Virginia | $419,920 | $296,346 | $123,574 |
| 26 | South Dakota | $325,618 | $204,253 | $121,365 |
| 27 | New Mexico | $321,186 | $205,568 | $115,618 |
| 28 | North Carolina | $340,430 | $226,223 | $114,207 |
| 29 | Florida | $378,126 | $266,829 | $111,297 |
| 30 | Pennsylvania | $294,099 | $184,476 | $109,623 |
| 31 | Tennessee | $338,769 | $232,937 | $105,832 |
| 32 | Michigan | $269,972 | $167,767 | $102,205 |
| 33 | Indiana | $262,265 | $163,287 | $98,978 |
| 34 | Nebraska | $284,464 | $185,505 | $98,959 |
| 35 | Georgia | $335,358 | $238,932 | $96,426 |
| 36 | Illinois | $298,871 | $205,797 | $93,074 |
| 37 | Ohio | $251,502 | $158,558 | $92,944 |
| 38 | Missouri | $271,597 | $179,866 | $91,731 |
| 39 | South Carolina | $309,323 | $221,270 | $88,053 |
| 40 | North Dakota | $293,556 | $205,544 | $88,012 |
| 41 | Iowa | $241,255 | $165,387 | $75,868 |
| 42 | Kansas | $252,794 | $180,503 | $72,291 |
| 43 | Kentucky | $235,363 | $165,726 | $69,637 |
| 44 | District of Columbia | $579,332 | $509,996 | $69,336 |
| 45 | Arkansas | $228,662 | $175,318 | $53,344 |
| 46 | Alabama | $241,517 | $188,428 | $53,089 |
| 47 | Texas | $302,999 | $252,853 | $50,146 |
| 48 | Oklahoma | $225,437 | $176,776 | $48,661 |
| 49 | West Virginia | $182,704 | $142,838 | $39,866 |
| 50 | Mississippi | $198,428 | $158,988 | $39,440 |
| 51 | Louisiana | $217,968 | $183,791 | $34,177 |
Typical home value source: Motley Fool
Average mortgage balance source: Experian
Where Equity Rankings Break From Home Value Rankings
Some of the most expensive places to live in the U.S. have the least equity to borrow against.
The area where this trend is most visible is Washington, D.C. Due to its high-value homes (the sixth highest in the U.S. with an average of $579,332) and relatively low amount of equity ($69,336), the median balance in D.C. for homeowners is $509,996.
A slightly less extreme example of this pattern can be seen in Texas, which ranked 34th in terms of home value and 47th in terms of equity. This same trend also appears in Colorado and other places like Florida, Georgia, Nevada, and Virginia. These states have been growing rapidly over the last several years with a large number of recent buyers.
Some areas show the opposite. In Vermont, home values rank 22nd while equity ranks 11th. Maine went from 18th to 8th, while Wisconsin rose by nine positions. Additionally, Michigan and Indiana both increased eight spots, and Ohio and Pennsylvania gained six spots.
Why Home Equity Varies Between States
Here are a few reasons why home equity varies so much between states.
How long people stay put
The longer you pay for your home, the lower the outstanding balance. The states with lower mobility tend to have smaller mortgages for houses that are otherwise equal.
How much values have climbed
A person who purchased a home in 2015 in an appreciating market has built up equity. A flat market doesn't provide the same appreciation.
When the mortgage was taken out
Homeowners who secured low interest rates prior to 2022 continue to pay down their mortgage principal.
How many people moved in recently
The states attracting the most new residents also have the highest average mortgage balances and the least amount of equity.
Rate movement matters too. Mortgage rates sit near 6.71%, which keeps existing owners in place. Annual home price growth reached 1.5% in July, a 14-month high, so values are climbing again after a soft stretch. If you're comparing what different lenders will do with property as collateral, our guide to commercial mortgage lenders covers how those calls get made, and our piece on land loans covers undeveloped property.
How Much of Your Equity Can You Borrow?
You can't borrow against all of the equity in your home. The lender keeps some of it in the house.
For many lenders, the sum of the amount borrowed should not exceed 80% of the value of the property. The more you owe, the less there is available to lend. Let's say your home has an appraised value of $400,000. Eighty percent of this would be $320,000. This is the maximum total amount that you owe against it.
If you still owe $150,000, subtract it from $320,000, and you get $170,000. Your equity in the property is $250,000, but you can only borrow $170,000.
Small to midsize business owners can use a home equity line of credit (HELOC) to access those dollars. HELOC lets you draw what you want, then only pay interest on the amount you have drawn.
A HELOC is the only type of financing option secured by your house. In the event that the business can no longer pay the loan, your house could be at risk.
Apply for a HELOC With Clarify Capital
First, look at the chart for your state, and do that same math with your own house. Then multiply your home's value by 80%, and subtract your current mortgage balance. That gives you an estimate of how much you may be able to borrow.
When you're ready to see what you qualify for, apply today. Clarify Capital works with a network of 75+ vetted, reputable lenders to match you with the right financing for your business. Checking your options won't affect your credit score.
Frequently Asked Questions
These are the most common questions I get about home equity.
What State Has the Highest Average Home Price?
States like Hawaii ($836,741), California ($775,549), and Massachusetts ($672,867) have the highest average home values.
What Is the Average Home Value in the U.S.?
The average U.S. home price as of July 2026 is approximately $371,774, according to Zillow. This number represents the average sales price and takes into consideration single-family homes, condominiums, townhomes, and co-ops.
How Do I Calculate My Home Equity?
Subtract the total amount you owe on your home from its current value. For instance, if your home is valued at $400,000 and you have borrowed $150,000, then you would have $250,000 in home equity.
How Much of My Home Equity Can I Borrow Against?
Typically, banks lend no more than 80% of a home's value when combining mortgages and home equity lines. If your home is valued at $400,000 and you currently owe $150,000, this means that you may borrow an additional $170,000.
Why Do Some Expensive States Have Low Home Equity?
Home equity is the portion of your house that you've paid down, not the price of the home. For example, although the District of Columbia has the sixth-highest priced homes nationally ($579,332), the average loan on those homes was $509,996, which results in less than $70,000 in equity.
Does Checking My Options Affect My Credit Score?
No, a soft pull is performed when you apply through Clarify Capital, so checking your options won't affect your credit score. A hard pull may be performed later in the process.
How Does Clarify Capital Protect My Data?
Clarify follows SOC 2 security principles. Your financial documents stay encrypted and are shared only with lenders reviewing your file. Our post on how we protect your data covers the details.
Michael Baynes
Co-founder, Clarify
Michael has over 15 years of experience in the business finance industry working directly with entrepreneurs. He co-founded Clarify Capital with the mission to cut through the noise in the finance industry by providing fast funding and clear answers. He holds dual degrees in Accounting and Finance from the Kelley School of Business at Indiana University. More about the Clarify team →
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