Homeowner Equity Rises Despite Falling Home Values
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%.
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.
- Cities Where Home Prices Are Falling Ahead of Spring Buying: A report from early 2025 found that Sun Belt cities were seeing prices fall the most ahead of the spring season.
- 80 Markets Where Home Prices Are Falling the Most: As of April 2025, 80—or 27%—of the 300 largest housing markets experienced year-over-year price drops. Falling by 5.1%, the largest decline in home prices was in Austin, Texas.
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