Homeowner Equity Dips in Q4, ATTOM Reports

(Stock photo courtesy of Johnson via Unsplash)

Despite a pullback in late 2025, nearly 45% of mortgaged homes remain equity rich according to ATTOM, Irvine, Calif.

The firm’s fourth quarter 2025 U.S. Home Equity & Underwater Report, shows that 44.6% of mortgaged residential properties in the United States were considered equity-rich in the fourth quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values.

That level was down slightly from 46.1% in the third quarter of 2025 and off from the recent peak of 49.2% seen in the second quarter of 2024. “Even so, the fourth quarter of 2025 marked the lowest share of equity rich properties since the fourth quarter of 2021,” the report said.

On the other end of the spectrum, there was a modest uptick in seriously underwater properties, ATTOM reported. In the fourth quarter, 3.0% of mortgaged homes fell into that category, up from 2.8% in the third quarter, representing properties where combined estimated loan balances exceeded estimated market values by at least 25%.

“After years of rapid gains, homeowner equity is settling into a more sustainable range, and that’s not a negative sign for the market,” noted ATTOM CEO Rob Barber. “Even with a modest pullback in equity-rich properties and a slight uptick in seriously underwater homes, overall equity levels remain remarkably strong by historical standards.”

Barber said as the spring buying season approaches, “these numbers suggest a housing market that is stabilizing rather than overheating, giving homeowners a solid financial foundation while allowing for healthier market dynamics.”