Americans in These 10 States Have the Lowest Net Worth
KEY FINDINGS:
Arkansas ranks lowest overall
Other than Missouri (Midwest) and New Mexico (Southwest), all of the states are in the South
Low retirement savings are a key contributor to lower net worths
Building wealth often depends on more than just income. Home values, retirement savings and the cost of living can all influence a household's net worth, which varies dramatically across the United States. According to a recent SmartAsset analysis, median household net worth ranges from just $62,500 in some states to nearly $700,000 in others.
Here's where households have the lowest median net worth and how key wealth-building measures compare.
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1. Arkansas
Median net worth: $62,500
Median retirement savings: $54,490
Median deposit account balance: $3,000
Median home equity: $95,000
Arkansas ranks lowest overall, with modest retirement savings and one of the lowest median deposit account balances among the states analyzed.
2. New Mexico
Median net worth: $77,500
Median retirement savings: $50,000
Median deposit account balance: $6,870
Median home equity: $132,000
While home equity is higher than in Arkansas, lower retirement savings contribute to New Mexico's place near the bottom of the ranking.
3. Oklahoma
Median net worth: $78,510
Median retirement savings: $39,450
Median deposit account balance: $5,000
Median home equity: $125,000
Oklahoma's ranking is driven in part by modest retirement account balances, with the second-lowest savings among the states in the ranking.
4. Kentucky
Median net worth: $81,900
Median retirement savings: $50,000
Median deposit account balance: $3,700
Median home equity: $94,000
Lower levels of accumulated savings weigh negatively on overall net worth for Kentucky households.
5. Louisiana
Median net worth: $85,230
Median retirement savings: $50,000
Median deposit account balance: $3,320
Median home equity: $100,000
Despite six-figure median home equity, Louisiana ranks among the lowest-net-worth states because many households have limited cash and retirement savings.
6. Mississippi
Median net worth: $87,280
Median retirement savings: $35,000
Median deposit account balance: $2,500
Median home equity: $108,000
Mississippi's median retirement savings of $35,000 is the lowest among the states on this list, which drags down overall household net worth.
7. Alabama
Median net worth: $103,500
Median retirement savings: $46,000
Median deposit account balance: $3,643
Median home equity: $137,000
Alabama crosses the six-figure net worth threshold, but household wealth remains below the national norm due to relatively low retirement savings and deposit account balances.
8. West Virginia
Median net worth: $115,000
Median retirement savings: $54,400
Median deposit account balance: $5,000
Median home equity: $150,000
West Virginia residents have accumulated more home equity than in many lower-ranked states, but it still ranks in the bottom 10 states for net worth overall.
9. Missouri
Median net worth: $118,700
Median retirement savings: $57,000
Median deposit account balance: $7,500
Median home equity: $144,500
Higher deposit account balances than most states on this list help Missouri households build wealth, though median net worth remains among the nation's lowest.
10. South Carolina
Median net worth: $129,900
Median retirement savings: $50,300
Median deposit account balance: $10,000
Median home equity: $150,000
South Carolina rounds out the top 10 with the strongest cash savings in the group, reflecting somewhat healthier household balance sheets than other low-net-worth states.
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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