According to recent analysis, the Average California homeowner with a mortgage currently has $626,900 in home equity. The national average is $310,500, meaning a Californian could purchase a median-priced home outright in 48 states.
So. while household net worth increases, it is also what keeps the housing market slow as many homeowners are reluctant to give up their homes and favorable mortgage rates – hence the term golden handcuffs. Currently, home prices in California are 46% higher than they were in 2020.
Of course, this means that to take advantage of this home equity, it’s necessary to leave California – which is what many are doing. California lost 230,000 to other states in 2025 and 240,000 in 2024. And, while income in other states is about 8% less, the 48% difference in median-home prices certainly makes it worthwhile for some.