After falling for three consecutive quarters, the share of “equity-rich” homes increased to 47.4% in the second quarter, up from 46.2% in the first quarter, according to ATTOM’s U.S. Home Equity & Underwater Report.
ATTOM defines “equity-rich” as meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.
The share of equity-rich homes peaked at 49.2% in the second quarter of 2024, when home prices were rising more rapidly.
Meanwhile, 2.7% of mortgaged residential properties in the U.S. were seriously underwater in the second quarter, meaning the combined estimated balance of loans secured by the properties were at least 25% more than the properties’ estimated market values.
That’s down slightly from 2.8% in the previous quarter but still higher than the 2.4% share posted in the second quarter of 2024.
“With home prices at record highs you’d expect to see owners enjoying more equity in their homes, so it’s good to see equity-rich rates rebound after a few slower quarters,” says Rob Barber, CEO of ATTOM, in the report.
“Unfortunately, the increase in equity-rich rates we saw in the second quarter hasn’t been spread evenly throughout the country,” Barber adds. “In some states, particularly Louisiana, too many homeowners are still struggling with loan balances that are more than their homes are worth.”
Quarter-over-quarter, the share of equity-rich homes rose in 37 states and the District of Columbia – but only 19 states had higher equity rich rates in the second quarter of 2025 than they did at the same time last year.
The states with the largest annual increases in the proportion of equity-rich homes were Connecticut, New Jersey, Alaska, West Virginia and Wyoming.
States that saw the largest decreases in equity-rich homes included Florida, Arizona, Georgia, Colorado and Washington.
Photo: Gustavo Zambelli