Homeowner Equity Rises Despite Falling Home Values

After three straight quarters of declining equity, the share of equity-rich homes in the US ticked up slightly in Q2 2025.
July 31, 2025
2 min read

Despite stagnating home values, homeowner equity has improved over the past quarter. Following three straight quarters of declining home equity, the share of equity-rich homes in the U.S. grew in Q2-2025. According to property data provider ATTOM’s 2025 U.S. Home Equity and Underwater Report, 47.4% of mortgaged residential properties in the U.S. were considered equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value. In Q1-2025, the share of equity-rich homes was 46.2%.

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. Unfortunately, the increase in equity-rich rates we saw in the second quarter hasn’t been spread evenly throughout the country. In some states, particularly Louisiana, too many homeowners are still struggling with loan balances that are more than their homes are worth.

- Rob Barber, CEO of ATTOM

The share of equity-rich homes rose quarter-over-quarter in a majority of states

Quarter-over-quarter, the share of equity-rich homes rose in 37 states as well as Washington, D.C. This means that approximately three quarters of states experienced a rise in home equity. 

On a year-over-year basis, the states that recorded the largest annual increases in the share of equity-rich homes were Connecticut, New Jersey, and Alaska. In these states, the share of equity-rich homes grew by 3.9, 3.6, and 2.7 percentage points, respectively. 

Despite the rise in equity-rich states, home values are dropping across the U.S.

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