Median home prices have declined from their peak in late 2022, but Federal Reserve figures from the second quarter of 2025 show a national average of $410,800. This remains roughly 30% higher than early pandemic levels.
Realtor.com data indicates that while many first-time buyers found homeownership unaffordable during the surge, Americans who already owned homes saw their equity rise by 80% between 2020 and 2024.
National statistics, however, do not always mirror local real estate conditions. A doubling of home values would affect each state differently. States with the greatest total equity, due to high home values, numerous homeowners, or both, would record the largest overall equity wealth increases. Yet they might not see the biggest gains per household.
GOBankingRates utilized Census housing units data, Experian's average outstanding mortgage balances, and the Zillow Home Value Index to compute which states would gain most in total equity and per household.
If home prices were to double, states with the highest total equity would gain the most in dollar terms. California leads with a total equity gain of $4,633,374,147,183. New York follows at $1,823,873,208,846, then Florida at $1,246,252,084,051. New Jersey shows $1,030,909,818,156, Massachusetts $987,965,361,867, and Washington $794,749,423,243. Texas, Pennsylvania, North Carolina, and Colorado round out the top ten with gains from $647,136,185,001 to $505,822,732,083.
For per-household equity gains, Hawaii tops the list at $410,976. Massachusetts is next at $323,070, then California at $311,427. New Jersey follows at $269,963, New Hampshire at $268,984, and Rhode Island at $253,918. Washington, Maine, Utah, and New York complete the ranking with per-household gains from $233,687 to $210,182.
A 100% increase in home values would generate trillions in equity but also bring serious negative consequences. It would exacerbate the already severe shortage of affordable homes for purchase, making homeownership even less accessible for first-time buyers. This could boost rental demand and subsequently raise rent prices.
Existing homeowners would see some of their new equity eroded by higher property taxes, which are based on property values. The value increase might be temporary. With many buyers unable to enter the market, demand for homes could drop, pulling down home values. This could leave recent purchasers with mortgage debts exceeding their home's worth, a significant foreclosure risk.