Nationwide, 46.1% of Homes Considered Equity-Rich
by ATTOM Team
ATTOM released its third quarter 2025 U.S. Home Equity & Underwater Report, which shows that 46.1% of mortgaged residential properties in the country were equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.
That was down from 47.4% in the previous quarter and 48.3% at the same time last year even though the national median home price rose to a record $370,000 in the third quarter of 2025.
About 2.8% of mortgaged residential properties in the U.S. were considered seriously underwater in the third quarter of 2025, meaning the combined estimated balance of loans secured by the properties were at least 25% more than the properties’ estimated market value. That was up from 2.7% in the second quarter and 2.5% in the third quarter of 2024.
“Over the past year, the share of equity-rich homes has eased slightly while the portion of seriously underwater properties has edged up,” said Rob Barber, CEO of ATTOM. “After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing. The modest fluctuations seen over the last few quarters may suggest a housing market that’s finding balance after an extended period of appreciation.”
Share of equity-rich homes up in less than half of states
The share of equity-rich homes rose in 19 states compared to the second quarter of 2025 and in 11 states compared to the third quarter of 2024.
The states with the largest year-over-year increases in the share of equity-rich homes were:
» Alaska (up from 31.9% in Q3 2024 to 34.3% in Q3 2025)
» Illinois (up from 34% to 35.8%)
» New Jersey (up from 52% to 53.8%)
» New York (up from 55.2% to 57%)
» Connecticut (up from 47.7% to 49.1%)
Seriously underwater homes on the rise in most states
The share of mortgaged properties considered seriously underwater rose in 35 states quarter-over-quarter and in 46 states year-over-year.
Markets with the largest annual increases in their proportion of seriously underwater homes were:
» the District of Columbia (up from 3.3% in Q3 2024 to 5.1% in Q3 2025)
» Maryland (up from 2.4% to 3.5%)
» Louisiana (up from 10.1% to 11.2)
» Georgia (up from 2.6% to 3.6%)
» Oklahoma (up from 4.8% to 5.4%).
Conclusion
Homeowner equity declined slightly in the third quarter of 2025, with 46.1% of mortgaged residential properties considered equity-rich, down from 47.4% in the prior quarter and 48.3% a year earlier. Meanwhile, the share of seriously underwater homes inched up to 2.8%, rising year-over-year in 46 states despite record-high national home prices.
