Homeowners in These 10 States Have the Least Home Equity

Home equity plays a major role in overall wealth, but how much homeowners have built up can vary dramatically depending on where they live. Differences in home prices, borrowing levels and local housing markets mean that in some states, homeowners have far less equity than the national norm.

Lower home equity isn't automatically a problem -- having too much wealth locked in an illiquid asset can limit financial flexibility. Still, in many states where equity levels are lowest, overall household net worth tends to lag as well, and in some cases falls below the value of home equity once debts are taken into account.

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Here is a look at the states where homeowners hold the least equity, and how those figures compare with median household net worth, according to a SmartAsset analysis.

1. Kentucky

• Median home equity: $94,000

• Median net worth: $81,900

2. Arkansas

• Median home equity: $95,000

• Median net worth: $62,500

3. Louisiana

• Median home equity: $100,000

• Median net worth: $85,230

4. Mississippi

• Median home equity: $108,000

• Median net worth: $87,280

5. Oklahoma

• Median home equity: $125,000

• Median net worth: $78,510

6. Iowa

• Median home equity: $125,000

• Median net worth: $177,100

7. Kansas

• Median home equity: $130,000

• Median net worth: $144,200

8. New Mexico

• Median home equity: $132,000

• Median net worth: $77,500

9. Alabama

• Median home equity: $137,000

• Median net worth: $103,500

10. Missouri

• Median home equity: $144,500

• Median net worth: $118,700

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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