ATTOM Reports Share of Equity-Rich Homes Near Five-Year Low
(Illustration Credit: Blake Wheeler Via Unsplash)
ATTOM, Irvine, Calif., reported the national share of equity-rich homes fell from 43.3% to 41.1% in the second quarter; the rate of seriously underwater homes held steady at 3.2%.
The data firm’s second-quarter U.S. Home Equity & Underwater Report found that 41.1% of mortgaged residential properties in the country were equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value.
That was down from 43.3% in the first quarter of the year and from 47.4% in the second quarter of 2025. “After four straight quarters of decline, the national share of equity-rich homes is at its lowest point in nearly five years,” the report said.
Meanwhile, 3.2% of properties in the second quarter were considered seriously underwater, meaning the combined estimated balances of loans secured by the properties were at least 25% more than the properties’ estimated market value. That was the same rate as the previous quarter but up from 2.7% at the same time last year.
“These two measures of home equity strength, the rates of equity-rich and seriously underwater homes, remain healthier than they were prior to 2020,” said Rob Barber, CEO of ATTOM. “However, both have been moving in less favorable directions over the past year, suggesting a trend worth watching.”
The share of equity-rich homes rose in 13 states quarter-over-quarter but just four states year-over year. The states that experienced year-over-year increases in their shares of equity-rich homes were North Dakota (up from 30.2% to 32.9% equity-rich); South Dakota (up from 52.1% to 53.6 %); Kentucky (up from 35.1% to 36.5 %); and Wyoming (up from 45.3% to 46.6 %).
The states with the largest annual drops in their shares of equity-rich homes were Minnesota (down from 37.6% to 20.1% equity-rich); Michigan (down from 50.8% to 39.3 %); California (down from 56.9% to 45.6%); Washington (down from 52.4% to 43.2%); and Missouri (down from 46.1% to 37.8%).
In the second quarter of 2026, the states with the highest proportions of equity-rich homes were Vermont (78.9%); Montana (59%); Rhode Island (54.9%); South Dakota (53.6%); and New Hampshire (53.1%).
The proportion of seriously underwater homes rose in 18 states quarter-over-quarter and in 33 states and the District of Columbia year-over-year.
The states with the largest annual increases in their rates of seriously underwater homes were Minnesota (up from 2.6% to 12.1% of homes seriously underwater); South Dakota (up from 3.1% to 5.7 %); Iowa (up from 5.9% to 7.8 %); Michigan (up from 2.5% to 4 %); and the District of Columbia (up from 3.7% to 5 %).
The states with the biggest year-over-year drops in their rates of seriously underwater homes were Louisiana (down from 11.9% to 10.3%); Kentucky (down from 7% to 5.7%); North Dakota (down from 5% to 4%); Oklahoma (down from 5.6% to 4.7%); and New York (down from 2% to 1.5%).
