Median home values continue to climb; here’s a state-by-state look
As we reach the middle of the decade, home prices continue to increase—as do their attendant mortgages. In many cases, however, home prices have been increasing by larger amounts than mortgage balances, meaning that home equity has been growing for many mortgage payers. Improving FICO Scores over that time may also mean more homeowners may be able to take advantage of that equity.
In this report, Experian compared the current median home prices as measured by online real estate marketplace Zillow to average mortgage balances as recorded by Experian as of the end of the first quarter (Q1) of 2025.
Median Home Value in the United States
According to data from Zillow, the median home price in the U.S. was $349,225 in early 2025. That’s about $100,000 higher than the $250,005 recorded in the beginning of 2020.
Average mortgage balances remain comfortably below the median home prices nationwide in 2025, according to data from Experian and Zillow. Although average mortgage balances range from $136,000 (in West Virginia) to $450,000 (in California), both states’ mortgage balances are well below their respective home values. (Unsurprisingly, completely urban Washington, D.C., sports an even higher mortgage average than California.) Among the states, the difference between a state’s average mortgage and home values can be as high as $300,000, as is the case in California and Hawaii.
Home Equity Makes a Difference
While far from a precise tool—home values are ultimately assessed on a case-by-case basis—the gap between home values and mortgage balances suggests how much home equity may be available. Home equity may be more limited in some states while it is more abundant in others. Recent home equity financing activity suggests that some homeowners are taking advantage.
Most Expensive Home Values by State
California and Hawaii lead the nation in median home prices, which is little surprise to anyone who owns a home in one of these states. In Q1 2025, the median home price in the Golden State was $788,920, while in the retirement haven of Hawaii the median residence is valued at $841,274.
At the $600,000 tier, the median residence in Massachusetts costs $635,252, and in Washington State $603,837. While not a state, Washington, D.C., is among the leaders in median home values, with a residence value of $606,163 in the beginning of 2025.
Home values in any of these places will cost close to, if not more than, twice the value of homes nationwide, where median prices were about $350,000 in 2025. Also of note: In each of these states, average FICO® Scores are either at or well above the national average of 714.
Lowest Home Values by State
Lower home values tend to be in the center of the continental U.S. In addition, average mortgage balances are much closer to median home prices in these states. For example, mortgage balances in Louisiana are just a shade below median home prices there. This suggests less home equity may be available to some of these homeowners.
A couple caveats: Not all homes are currently being financed by a mortgage. Furthermore, in these states, more homes are less likely to be financed by a mortgage than in other parts of the U.S. So while some homeowners with mortgages in these low-cost states are carrying high mortgage balances (as a percentage of home value), many others are unencumbered with a mortgage.
Average Mortgage Balance, Median Value Up in Every State Since 2020
In general, while average mortgage balances in states have climbed by 24% since 2020, median home prices have grown even faster. Some states saw median home value increases that were nearly triple that over five years.
Looking at mortgage balances first, the average mortgage balance has increased 24% nationwide since 2020, from $207,491 to $256,803 in 2025. Most states in the U.S. saw increases close to the national average.
But there are some outliers. Among the lower mortgage balance growth states are Connecticut, Illinois and Maryland. Each has seen balances grow the least since 2020 less than 15% (or less than a 3% annually over five years).
And the states where mortgage balances are climbing the most? If you’ve been following migration trends over the past few years, the names won’t be surprising. Among the states where average mortgage balances grew by 30% or more are Arizona, Florida, Idaho, Montana, North Carolina, Tennessee, Texas and Washington state.
In some of these states, Chambers of Commerce are more than happy to tell you about their economic growth, which in part attracts new residents with jobs that allow them to purchase a home in their new state—to grossly oversimplify. That’s certainly the case in Texas, where average mortgage balances grew by 34%, despite having a less tight residential real estate market than most. But other mortgage growth can be attributed to new residents driving up demand for existing housing supply, as is certainly the case in Idaho and Tennessee.
Among housing values, median home values have climbed as much as 66% in New Hampshire, according to Zillow. Other rustic flag bearers, Maine and Montana, also saw home values grow nearly as much. With apologies to their state economies, none of these states are undergoing an economic renaissance—it’s more likely that the demand for vacation homes is increasing in these areas.
Median home prices have climbed sharply nearly everywhere, up 40% over the past five years nationwide.
The Bottom Line
It’s unlikely that U.S. home prices in the next five years will resemble the extraordinary price appreciation since 2020—or, at least, they won’t increase for the same reasons. Much of the reason home prices are outpacing mortgage balances is that many mortgage borrowers have fixed-rate mortgages much lower than the nearly 7% mortgages available to borrowers today. These lower fixed-rate mortgages help homeowners accumulate home equity more quickly, as more of the monthly payment goes to principal instead of interest.
However, the affordability issue for many still looking to finance a home in 2025 and beyond will likely continue to persist, as higher incomes will be required to afford homes at higher mortgage interest rates. And if mortgage rates do fall, there’s still the issue of housing under supply in many markets, which puts upward pressure on home sale prices.
Methodology: The analysis results provided are based on an Experian-created statistically relevant aggregate sampling of our consumer credit database that may include use of the FICO® Score 8 version. Different sampling parameters may generate different findings compared with other similar analysis. Analyzed credit data did not contain personal identification information. Metro areas group counties and cities into specific geographic areas for population censuses and compilations of related statistical data.
This story was produced by Experian and reviewed and distributed by Stacker.
