California's $627,000 average home equity ranks No. 2 in US, CoreLogic data shows

Key Facts

Average equity in California: $627,000
National average equity: $310,500
California's rank: No. 2 among states
Total equity in California: $4.1 trillion
Share of U.S. total equity: 23%
Number of mortgaged properties: 6.6 million

Background

A CoreLogic report for the first quarter of 2026 compares mortgage borrowings with estimated property values to measure homeowner equity. Equity is the gap between what is owed and what a property is worth, shaped by down payments, appreciation, and loan balances.

In California, the average equity for mortgaged homes stood at $627,000 at the start of 2026. This figure excludes properties owned free of any loans. The measure serves as an indicator of ownership wealth and housing security, offering a financial cushion in tough times.

Current Situation

California's average equity ranked second among U.S. states, more than double the national average of $310,500. Only Hawaii was higher at $688,000, while Massachusetts ranked third at $480,000.

At the lower end, Louisiana had the lowest average equity at $115,000, followed by Oklahoma and Iowa at $124,000 each. Among California's economic rivals, Texas ranked 35th at $200,000, and Florida ranked 19th at $288,000.

Multiplying California's average equity by its 6.6 million mortgaged properties yields a total of $4.1 trillion in value above what is owed. This represents 23% of the nation's $17.9 trillion in home equity, the largest share of any state.

Average Home Equity by State (Q1 2026)
State	Average Equity
Hawaii	$688,000
California	$627,000
Massachusetts	$480,000
Florida	$288,000
Texas	$200,000
Iowa	$124,000
Oklahoma	$124,000
Louisiana	$115,000

Figures are for mortgaged homes only, from CoreLogic Q1 2026 report.

Impacts

California's high equity levels help explain several economic characteristics of the state, including its high cost of living, low rates of out-migration, and the significant cash required to buy a home. It also contributes to residents' strong attachment to their neighborhoods, often seen in NIMBYism.

The total equity of $4.1 trillion is a statewide financial cushion. For individual homeowners, this equity can provide security during economic downturns, while for the broader market, it may influence housing stability and consumer spending.

Nationally, California's equity accounts for nearly one-quarter of all U.S. home equity above mortgages. Other states with large total equity include Florida at $1 trillion, New York at $995 billion, and Texas at $935 billion.

Future Outlook

Scenario analysis: The possibilities below are not certain predictions.

If home prices continue to appreciate, California's average equity could rise further, widening the gap with the national average. Conversely, if the housing market cools or prices decline, equity levels may shrink, reducing the financial cushion for homeowners.

Should mortgage rates change significantly, loan balances and equity could be affected. Higher rates might slow appreciation, while lower rates could spur refinancing and alter equity calculations.

The state's total equity, already the largest in the nation, may remain dominant if California's housing market stays strong. However, any economic downturn could test the resilience of this equity buffer.

Source: siliconvalley.com

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