Property data curator ATTOM on May 8 released its Q1 2025 U.S. Home Equity & Underwater Report, which showed that 46.2 percent of mortgaged residential properties in the country were considered equity-rich in the first quarter. This means the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.
The proportion of equity-rich homes was down from 47.7 percent in the fourth quarter of 2024 and has dropped each quarter since a peak of 49.2 percent in the second quarter of last year. The rate is still historically high, however, and nearly double what it was in the first quarter of 2020.
The percentage of seriously underwater homes nationwide — those where the combined estimated balance of loans secured by the property is at least 25 percent more than the property’s estimated market value — ticked up from 2.5 percent in the fourth quarter of 2024 to 2.8 percent in the first quarter of 2025.
“Home equity rates are near their highest points in recent years and the dip we’ve seen early this year in the proportion of equity-rich homes shouldn’t cause too much concern,” ATTOM CEO Rob Barber said in a release. “In each of the two previous years, the first quarter marked the lowest point of the year before the proportion of equity-rich homes shot back up in the second quarter.”
Equity-rich rates fell in 47 states quarterly but majority of states still up annually
The drop in the proportion of equity-rich homes was spread across most of the country. The rate fell in 47 states and the District of Columbia between the fourth quarter of 2024 and the first quarter of 2025. However, it was still up in 33 states and D.C. compared to the same time last year, a reminder that this dip comes amid a historically strong housing market.
The states with the largest annual increase in the proportion of equity-rich homes were Connecticut (up from 42.2 percent in the first quarter of 2024 to 48 percent in the first quarter of 2025), New York (up from 49.1 to 54.1 percent). New Jersey (up from 47.1 to 52.1 percent), Rhode Island (up from 55 percent to 59.8 percent), and Kentucky (up from 28.7 percent to 33.3 percent).
The largest annual decreases in equity-rich homes were in Florida (down from 54.4 percent in the first quarter of 2024 to 49.3 percent in the first quarter of 2025), Utah (down from 54 percent to 50.7), Arizona (down from 52.9 percent to 49.8 percent), Washington (down from 54.2 to 51.3 percent), and Colorado (down from 48.4 to 45.8 percent).
Proportion of seriously underwater homes remains steady and low
The nationwide proportion of mortgaged homes considered seriously underwater has remained steady between 2 and 3 percent since early 2023. At 2.8 percent of homes in the first quarter of 2025, the rate is less than half of what it was during the first quarter of 2020 (6.6 percent).
The proportion of seriously underwater homes increased quarterly in 48 states and D.C but only 25 states and D.C. saw their underwater rates go up compared to the same time last year.
The biggest year-over-year increases in seriously underwater rates were in Kansas (up from 2.9 percent in the first quarter of 2024 to 4.7 percent in the first quarter of 2025), Utah (up from 2.1 percent to 2.6 percent), South Carolina (up from 3.3 percent to 3.8 percent), Nebraska (up from 3.7 percent to 4.1 percent), and South Dakota (up from 3 percent to 3.4 percent).
The states with the largest year-over-year declines in seriously underwater rates were Wyoming (down from 8.8 percent in the first quarter of 2024 to 2.5 percent in the first quarter of 2025), West Virginia (down from 5.4 percent to 4.2 percent), Kentucky (down from 8.3 percent to 7.3 percent), Louisiana (down from 11.3 percent to 10.5 percent), and Oklahoma (down from 6.1 percent to 5.5 percent).
Northeast and West have highest equity-rich rates
Six of the 10 states with the highest proportion of mortgaged homes considered equity-rich in the first quarter of 2025 were in the Northeast, while the remaining four were in the West.
The states with the highest equity-rich rates were Vermont (85.8 percent), New Hampshire (60.5 percent), Rhode Island (59.8 percent), Montana (59.4 percent), and Maine (58.9 percent).
The states with the lowest equity-rich rates were Louisiana (20.3 percent), Maryland (31.4 percent), Illinois (31.5 percent), Alaska (31.7 percent), and North Dakota (31.9 percent).
Among the 110 metropolitan statistical areas with populations greater than 500,000 in the ATTOM analysis, the markets with the highest equity-rich rates were San Jose, Calif. (68.2 percent); Los Angeles (64 percent); San Diego (63 percent); Portland, Me. (61.5 percent); and Miami (59.5 percent).
Quarter-over-quarter, the proportion of equity-rich homes decreased in 99 out of the 110 large markets (90 percent). Compared to the same time last year, it fell in 56 of those 110 markets (51 percent).
Midwest counties lead the way in share of equity-rich homes
Among the 1,751 counties with at least 2,500 homes with a mortgage in the first quarter of 2025, 13 of the 15 counties with the highest equity-rich rates were in Michigan, Wisconsin, or Vermont.
The counties with the highest equity-rich rates were Chittenden County, Vt. (91.3 percent); Marquette County, Mich. (89.8 percent); Benzie County, Mich. (88.7 percent); Portage County, Wisc.(88.6 percent); and Manistee County, Mich. (88 percent).
The lowest equity-rich rates were concentrated in the South, with nine of the 15 counties with the smallest proportion of equity-rich homes falling in Louisiana. The counties with the lowest rates were Vernon Parish, La. (6.3 percent); Iberville County, La. (8.3 percent); Long County, Ga. (9.8 percent); Ascension Parish, La. (9.9 percent); and Acadia Parish, La.(10.9 percent)
South and Midwest have highest proportion of seriously underwater homes
Eighteen of the 20 states with the highest percentage of seriously underwater homes were in the South and Midwest. The states with the highest rates of seriously underwater homes were Louisiana (10.5 percent), Kentucky (7.3 percent), Mississippi (6.6 percent), Arkansas (5.8 percent), and Iowa (5.7 percent).
The states with the smallest proportion of seriously underwater homes were Vermont (0.7 percent), Rhode Island (1 percent), New Hampshire (1.1 percent), Massachusetts (1.2 percent), and Hawaii (1.3 percent).
Among the 110 large metro areas with populations over 500,000 in the ATTOM analysis, those with the largest shares of seriously underwater homes were Baton Rouge, La. (11.9 percent); New Orleans (7.3 percent); Toledo, Ohio (7 percent); Jackson, Miss. (6.3 percent); and Memphis, Tenn. (6.2 percent).