Homeowners with mortgages are starting to see their home equity decrease, mainly in markets where home prices are decreasing, with the average U.S. homeowner losing approximately $9,200 in equity during the past year, according to a report from Cotality.
Still, the average homeowner with a mortgage has gained $307,000 in equity during that same period, the firm says in it latest Homeowner Equity Report.
Total homeowner equity for borrowers with a mortgage totaled $17.5 trillion in the second quarter of 2025.
As home prices dip in the District of Columbia and Florida, these markets saw the largest annual equity declines, down an average of $34,000 and $32,000, respectively.
“The average borrower equity is approximately $307,000, representing the third highest figure in recorded history and an increase of $124,000 compared to the first quarter of 2020 at the start of the pandemic,” says Selma Hepp, chief economist for Cotality, in the report. “Even in markets where recent price declines have pulled down average equity, such as the District of Columbia and Florida, borrowers on average hold almost $350,000 and $290,000 in equity, respectively.”
Borrower equity decreased year over year, falling by $141.5 billion or 0.8%, Cotality says.
That brought overall net equity to $17.5 trillion for homeowners with a mortgage.
Still, recent declines are not enough to shave off the gains that homeowners have seen over the last few years.
Photo: Gustavo Zambelli