Map Shows Highest Self-Employed Mortgage Borrowers by State

A new map from AD Mortgage reveals that Vermont has the highest percentage of self-employed workers in the United States as of 2024, with 8.6% of its population identifying as self-employed. This analysis, which utilized U.S. Census Bureau American Community Survey (ACS) data from 2019 and 2024 for all 50 states and Washington D.C., highlights a significant trend of increasing self-employment across the nation. Following Vermont, Montana ranks second with 8.4% self-employed, Maine is third at 8.0%, South Dakota is fourth with 7.6%, and North Dakota is fifth with 7.4%. California secures the sixth position, also reporting 7.4% of its population as self-employed.

AD Mortgage, a non-qualified mortgage lender, defined a self-employed worker as any employed individual aged 16 or older who operates within their own unincorporated business. This broad definition encompasses various roles, including small-business owners, freelance professionals such as writers, videographers, and graphic designers, personal service providers like cosmetologists and personal trainers, and gig economy workers such as ride-share drivers, food couriers, and independent task workers. The analysis aimed to illustrate the growing prevalence of these non-traditional employment structures.

Overall, the data indicates a nationwide shift, with 29 out of the 50 states and Washington D.C. experiencing an increase in the percentage of self-employed individuals between 2019 and 2024. Rhode Island saw the most substantial growth, with an increase of 1.84 percentage points in its self-employed population. Vermont followed with a 0.94 percentage point rise, New Mexico with 0.80 percentage points, Nevada with 0.74 percentage points, and a notable increase was also observed in North Dakota. This expansion in self-employment reflects broader changes in the economic landscape, moving away from traditional W-2 employment models towards more flexible and independent work arrangements. Mike Pearson, senior vice president of business development at AD Mortgage, commented on this evolving employment market, noting the growth in sectors like tech freelancing, content creation, and the continued presence of skilled trades and investment-related work, all contributing to a diverse earning landscape beyond conventional jobs.