Iowa Ranks Near Bottom in Home Equity as National Wealth Hits Record $34.9 Trillion

While American homeowners are sitting on a record $34.9 trillion in housing wealth, Iowa homeowners are being left behind, ranking near the bottom of a new national study measuring home equity by state.

According to a LendingTree analysis of nearly 967,000 home equity inquiries made between January and March 2026, Iowa's median home equity stands at just $130,000, placing the Hawkeye State 49th out of 50 states, ahead of only West Virginia.

Where Iowa Stands on Home Equity

LendingTree researchers calculated the median reported home equity and the share of inquiries reporting at least $200,000 in home equity for each state. Iowa's $130,000 median puts it in the bottom tier alongside West Virginia, Arkansas, and Mississippi.

By contrast, the top states show a dramatically different picture. Hawaii leads the nation with a median home equity of $425,000, followed by California at $350,000, Massachusetts at $345,000, Utah at $300,000, and New Jersey at $295,000.

The ten states with the lowest median home equity include:

• Louisiana: $150,000
• Alabama: $150,000
• Ohio: $150,000
• Indiana: $150,000
• Oklahoma: $145,000
• Kentucky: $145,000
• Mississippi: $140,000
• Arkansas: $140,000
• Iowa: $130,000
• West Virginia: $130,000

Why Iowa Homeowners Have Less Equity

Iowa's lower home equity figures reflect the state's more affordable housing market. While that is good news for first-time buyers looking to enter the market, it means existing homeowners have less financial leverage to tap into for home improvements, debt consolidation, or major expenses.

The average price per square foot for new homes has surged 74 percent over the past decade, from $97 in 2014 to $169 in 2024, according to the study. However, growth has been uneven across regions.

In the West, prices per square foot more than doubled, rising 105 percent to reach $224 in 2024. The Midwest saw just 63 percent growth, with prices reaching $165 per square foot.

What Home Equity Means for Iowa Families

Home equity represents the portion of a property's value that a homeowner truly owns outright, after any mortgage debt. As of the first quarter of 2026, U.S. households owned $48.7 trillion in real estate assets and carried $13.8 trillion in mortgage debt, resulting in $34.9 trillion in total home equity, according to the Federal Reserve Board.

Homeowners can use equity to secure loans for home improvements, consolidate high-interest debts, or pay for large planned expenses. For Iowa families, the lower equity levels mean less financial flexibility compared to homeowners in coastal states.

Matt Schulz, LendingTree's chief consumer finance analyst, cautioned homeowners against overextending themselves.

“The enormous differences among states are a reminder that the home equity story can look very different depending on where you live,” Schulz said. “For some homeowners, their house can provide a huge financial cushion. For others, there may be far less wiggle room.”

He added: “That's why it's important to look past the national headlines and focus on your own situation. Before borrowing against your home, make sure you know how much equity you have and what the loan will truly cost you. Most importantly, don't borrow more than you need.”

National Home Equity Trends

Despite Iowa's lower numbers, homeowners across the country are taking advantage of the equity they have built. U.S. homeowners tapped into an estimated $47 billion in equity during the first three months of 2026, according to the June 2026 ICE Mortgage Monitor from Intercontinental Exchange. That was the highest first-quarter withdrawal figure since 2021.

The national spike in home prices that followed the pandemic homebuying frenzy was driven by historically low borrowing costs. The national median single-family home price rose by 48 percent between 2019 and 2024, according to Harvard's Joint Center for Housing Studies, more than twice the rate of median income growth.

For Iowans, the takeaway is clear: while the state's affordable housing market keeps entry costs lower, it also means less accumulated wealth for existing homeowners. As always, financial decisions should be made based on individual circumstances rather than national trends.

Frequently Asked Questions About Home Equity in Iowa

How does Iowa's home equity compare to the national average?

Iowa's median home equity of $130,000 is significantly below the national picture, where homeowners hold a record $34.9 trillion in total equity. The state ranks 49th out of 50 states, ahead of only West Virginia.

Can Iowa homeowners still use home equity loans?

Yes. Iowa homeowners can still tap into their home equity for loans, but the amounts available will be lower than in high-equity states. Lenders typically allow borrowing up to 80 percent of a home's value minus the outstanding mortgage balance.

Why are coastal states seeing higher home equity?

Coastal states like Hawaii and California have historically expensive housing markets, and prices have risen faster there over the past decade. The West saw price per square foot growth of 105 percent since 2014, compared to 63 percent in the Midwest.