ATTOM released its third quarter 2025 U.S. Home Equity & Underwater Report, which showed that 46.1 percent 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 percent in the first quarter and 48.3 percent at the same time last year, even though the national median home price rose to a record $370,000 in the third quarter.
About 2.8 percent of mortgaged residential properties were considered seriously underwater in the third quarter, meaning the combined estimated balance of loans secured by the properties were at least 25 percent more than the properties’ estimated market value. That was up slightly from 2.7 percent in the second quarter and 2.5 percent 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,” ATTOM CEO Rob Barber said in a release. “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 and in 11 states compared to the third quarter of 2024, according to ATTOM.
The states with the largest year-over-year increases in the share of equity-rich homes were Alaska (up from 31.9 percent in Q3 2024 to 34.3 percent in Q3 2025); Illinois (up from 34 percent to 35.8 percent); New Jersey (up from 52 percent to 53.8 percent); New York (up from 55.2 percent to 57 percent); and Connecticut (up from 47.7 percent to 49.1 percent).
The markets with the largest year-over-year drops in their shares of equity-rich homes were Florida (down from 52.5 percent to 46 percent); Arizona (down from 50 percent to 44.5 percent); Colorado (down from 48 percent to 43 percent); the District of Columbia (down from 34.1 percent to 29.2 percent); and Georgia (down from 46.3 percent to 41.8 percent).
Seriously underwater homes on the rise
The share of mortgaged properties considered seriously underwater rose in 35 states quarter-over-quarter and in 46 states year-over-year, according to ATTOM
Markets with the largest annual increases in their proportion of seriously underwater homes were the District of Columbia (up from 3.3 percent in Q3 2024 to 5.1 percent in Q3 2025); Maryland (up from 2.4 percent to 3.5 percent); Louisiana (up from 10.1 percent to 11.2 percent); Georgia (up from 2.6 percent to 3.6 percent); and Oklahoma (up from 4.8 percent to 5.4 percent).
The states that saw the largest annual drops in seriously underwater rates were Mississippi (down from 7.2 percent to 6.6 percent); Wyoming (down from 2.4 percent to 2.2 percent); Vermont (down from 0.7 percent to 0.6 percent); South Dakota (down from 3.1 percent to 3 percent); and New York (down from 1.8 percent to 1.7 percent).