U.S. household net worth study reveals regional disparities

A study by SmartAsset examining household wealth in the United States shows that the national rate of households with zero or negative net worth stands at 11.3%. A negative net worth occurs when a household's debts equal or exceed its assets, a condition linked to increased stress, depression, and poorer health.

Regional variations are significant across the country. Oklahoma, Mississippi, and New York have estimated shares of zero or negative net worth that are significantly higher than the national average. Conversely, California, Hawai‘i, Idaho, New Mexico, Pennsylvania, and Washington report significantly lower shares.

States within the so-called “bankruptcy belt”—Alabama, Mississippi, and Tennessee—are among the ten states with the largest estimated shares of low-net-worth households. The study also notes that the share of households with zero or negative net worth increased year-over-year in 22 states.