Median & Average Net Worth by State

ByMike Updated on

Understanding wealth distribution across different states is crucial for evaluating financial health on both individual and collective levels. By examining net worth, which is calculated by subtracting liabilities from assets, we can gain insights into the financial landscape of each state.

Below, you’ll find visual representations of average and median net worth by state, offering a detailed look at the economic realities faced by residents across the country.

Median Net Worth by State Visualized

median net worth by state
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5 States with the Highest Median Net Worth

  1. Washington (WA): $127,823
    Washington’s strong tech and aerospace industries contribute significantly to its high median net worth, making it the top state in the nation.
  2. Massachusetts (MA): $88,791
    Known for its prestigious universities and healthcare sector, Massachusetts boasts a high standard of living that supports a strong median net worth.
  3. Minnesota (MN): $85,813
    Minnesota’s diverse economy, along with a high quality of life, contributes to a solid median net worth for its residents.
  4. California (CA): $85,581
    The booming tech and entertainment industries in California, coupled with a robust agricultural sector, drive the state’s high median net worth.
  5. Alaska (AK): $83,688
    Alaska’s natural resources and energy sectors play a central role in supporting the financial stability of its residents, contributing to its high median net worth.

5 States with the Lowest Median Net Worth

  1. Mississippi (MS): $7,767
    Mississippi faces significant economic challenges, including high poverty and limited job opportunities, resulting in the nation’s lowest median net worth.
  2. West Virginia (WV): $10,311
    Historically dependent on coal mining, West Virginia has struggled with economic decline, which contributes to its low median net worth.
  3. Louisiana (LA): $12,837
    With economic instability, particularly in areas frequently affected by natural disasters, Louisiana has one of the lowest median net worths in the country.
  4. Arkansas (AR): $17,546
    Lower wages and limited economic opportunities in rural areas contribute to Arkansas’s low median net worth.
  5. Oklahoma (OK): $19,150
    Economic disparities and a reliance on the energy sector have impacted Oklahoma’s median net worth, placing it among the lowest in the nation.

Average Net Worth by State Visualized

average net worth by state
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Top 5 States with the Highest Average Net Worth

  1. Connecticut (CT): $878,513
    Connecticut’s high average net worth is primarily due to a significant number of high-income households and affluent suburbs.
  2. California (CA): $787,755
    California’s tech industry has created immense wealth, contributing to its high average net worth.
  3. Vermont (VT): $782,375
    A strong sense of community and local businesses have driven wealth accumulation in Vermont.
  4. New Jersey (NJ): $775,885
    New Jersey’s proximity to New York City fosters high salaries and significant wealth.
  5. Washington (WA): $766,158
    Washington’s booming tech sector significantly boosts average wealth.

5 States with the Lowest Average Net Worth

  1. North Dakota (ND): $334,058
    North Dakota’s rural economy and lower population density contribute to its low average net worth.
  2. West Virginia (WV): $339,618
    Ongoing economic struggles and reliance on traditional industries have left West Virginia with a low average net worth.
  3. Mississippi (MS): $375,314
    High poverty rates and limited job opportunities result in a notably low average net worth in Mississippi.
  4. Utah (UT): $397,901
    Despite a growing economy, Utah’s younger population often has lower net worth due to early-career salaries and high living costs.
  5. Louisiana (LA): $422,908
    Economic instability, particularly in areas affected by natural disasters, has hindered wealth growth in Louisiana.

Median vs. Average Net Worth Explained

You may have noticed the average net worth is significantly higher than the median, here is why:

  • Average Net Worth: This figure represents the total net worth of a population divided by the number of people. It can be skewed by a few individuals with exceptionally high wealth.
  • Median Net Worth: This is the middle value of net worth, where half of the population has more and half has less. It provides a more accurate reflection of the typical resident’s financial status.

Understanding these metrics is vital, as they highlight economic disparities. For instance, while California has a high average net worth due to wealthy individuals in the tech sector, its median net worth reflects a more diverse economic landscape.

Comparing Median and Average Net Worth by State

Significant disparities can be observed between median and average net worth across states. For example, Washington has a high average net worth ($766,158) but an even more impressive median net worth ($127,823), suggesting wealth concentration in a smaller group of affluent individuals.

Conversely, states like Nevada and Florida show a stark contrast where low median net worth (under $30,000) highlights economic challenges despite an influx of tourists and residents.

Regional Trends and Patterns

Examining net worth data by region reveals distinct patterns:

  • Northeast: States like Connecticut and New Jersey lead in both average and median net worth due to high salaries and concentrations of wealth.
  • West Coast: California and Washington showcase high average net worth driven by technology and innovation.
  • South: States like Georgia and Florida illustrate the challenges of economic disparity despite tourism revenues.

Understanding these regional trends can shed light on the underlying economic conditions and opportunities for improvement.