Home equity has been on the rise for more than a decade across the country. In recent years, though, it’s been more of a meteoric boom, especially depending on where you live. Understanding these regional trends can help you make smarter decisions about how and when to capitalize on your home’s value.
National Surge, Regional Differences
According to Bankrate, U.S. home equity has increased by more than 140% since 2020. That amounts to homeowners collectively having trillions of dollars of additional wealth tied to their homes. However, this growth isn’t distributed equally among states. Some are seeing much stronger growth than others. Let’s dive into the numbers.
Southern and Midwestern States Lead the Way
When it comes to percentage growth, the South and Midwest have posted some of the biggest gains.
- West Virginia has seen home equity grow by approximately 450% since 2020.
- Oklahoma isn’t far behind with more than 430% growth in the same timeframe.
- Kansas and Illinois have also posted major increases, more than doubling in many cases.
It’s also important to note these markets started with lower home values, so recent price appreciation has had a major impact.
How Do Higher-Cost States Compare?
The percentage gains aren’t as dramatic in higher-cost housing markets, but the dollar amounts are still significant.
Homeowners in states like California, Massachusetts, New Jersey, Hawaii, and New Hampshire have gained tens of thousands of dollars in additional equity. Even smaller percentage growth in these states can translate to a big jump in available equity because home prices are already high.
Why This Matters for Homeowners
If you live in a state where equity has been rising quickly, you may now have more borrowing power than you realized. That equity can be used to:
- Consolidate high-interest debt into one lower monthly payment
- Fund home improvement projects
- Cover large expenses, like tuition or medical bills
- Invest for the future
Even if your area has not seen the fastest growth, your equity may still be an important financial resource.
Key Takeaway
Home equity is growing nationwide, but your location plays a big role in how much you may have gained. Keeping track of these regional trends can help you decide when it’s the right time to put your equity to work for you.
Thinking about tapping into your equity? At Spring EQ, we offer a variety of solutions with competitive rates. If you’re interested in seeing what we have to offer, you can prequalify instantly without taking a hit to your credit.
Please Note: Spring EQ does not provide tax, legal, investment or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.