ATTOM: More Homes Equity-Rich in Q2

(Image courtesy of Robert So/pexels.com)

ATTOM, Irvine, Calif., released its Q2 2025 U.S. Home Equity and Underwater Report, finding that 47.4% of mortgaged residential properties are equity-rich.

That was up from 46.2% in Q1 of this year. The recent peak was 49.2% in Q2 2024.

ATTOM defines equity-rich as when the combined estimated amount of loan balances secured by the properties is no more than half of their estimated value.

However, 2.7% of mortgage residential properties were deemed seriously underwater, meaning the combined estimated balance of loans secured by the properties were at least 25% more than the properties’ estimated market values. That’s down slightly from 2.8% in Q1, but higher than the 2.4% share in Q2 2024.

“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,” said Rob Barber, CEO of ATTOM. “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.”

By region, New England has the highest proportion of equity-rich homes, with Vermont (84.9%), New Hampshire (60.3%) and Rhode Island (60.3%) leading the way. Rounding out the top five are Montana (59.2%) and Hawaii (59.2%).

The states with the lowest proportion of equity-rich homes are Louisiana (18%), North Dakota (30.2%), Washington, D.C. (32.7%), Iowa (33%) and Alaska (33.7%).

The states with the smallest proportions of seriously underwater homes are Vermont (0.7%), Rhode Island (0.9%), New Hampshire (1.1%), Massachusetts (1.1%) and Hawaii (1.3%).

States with the highest share of seriously underwater homes were Louisiana (11.9%), Kentucky (7%), Mississippi (6.5%), Iowa (5.9%) and Oklahoma (5.6%).