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U.S. Homeowner Equity Trends in Q4 2025

The latest report from ATTOM, a notable provider of property data and analytics, unveils trends in U.S. homeowner equity for the fourth quarter of 2025. Despite a small decline in equity-rich properties, the overall health of the housing market demonstrates signs of stability.

As of Q4 2025, 44.6% of mortgaged residential properties in the United States were classified as equity-rich. This metric indicates that the total loan balances on these properties do not exceed half of their estimated market values. Even though this figure represents a decrease from 46.1% in Q3 2025 and a peak of 49.2% in Q2 2024, it signals a robust equity standing when compared to the 26.5% recorded in early 2020.

The State of Seriously Underwater Mortgages

Simultaneously, the segment of seriously underwater properties, where loan balances exceed market values by at least 25%, saw a slight rise to 3.0% up from 2.8% in the previous quarter. However, historically, this rate remains low, indicating a stable broader equity landscape.

Rob Barber, CEO at ATTOM, commented, "Homeowner equity is adjusting to more sustainable levels after years of dramatic gains. This trend is not detrimental to the market; in fact, it's a signal of a stabilizing housing environment. As we approach the spring buying season, homeowners possess a solid financial foundation, enhancing market dynamics."

Regional Strategies and Trends

Analysis shows that 42 out of 49 states witnessed a quarterly slip in equity-rich properties, primarily moving down by less than two percentage points. The most significant annual declines were observed in states like Florida (from 50.9% to 43.9%), Kentucky (from 38.5% to 32.1%), and South Carolina (from 46.7% to 40.9%).

Interestingly, some areas have experienced slight increases in equity-rich classifications, especially in the Northeast and Midwest. For instance, Alaska, North Dakota, and Illinois all showed year-over-year growth in equity-rich shares, with Alaska’s rising from 31.5% to 33.5%.

Stability Amidst Underwater Properties

On the flip side, the report notes that seriously underwater mortgage rates remain relatively stable throughout the nation. Only minor annual improvements were recorded, with North Dakota and South Dakota experiencing slight declines in their underwater shares.

Geographic Disparities In Equity

Specific states stand out with higher equity-rich ratios. Notably, Vermont leads the nation, with 87.0% of properties considered equity-rich. Other high-performing states include New Hampshire, Rhode Island, Maine, and Montana.

Conversely, states with the lowest equity-rich rates predominantly feature in the Midwest and South. Louisiana ranks lowest with just 20.1% of properties being equity-rich, followed by Maryland and Kentucky. This illustrates significant regional disparities in homeowner equity.

Insights from Major Counties

Among the 1,753 counties reviewed, those with the highest equity-rich shares were again predominantly found in the Midwest, particularly in Michigan and Wisconsin. Counties such as Benzie County and Manistee County in Michigan exhibited remarkably high equity-rich percentages.

Counties with populations exceeding 500,000 also reveal noteworthy insights. Santa Clara County in California boasts an equity-rich ratio of 66.3%, reflecting the elevated home values in coastal regions.

Conclusion

From the insights yielded by ATTOM's Q4 2025 report, it's evident that while the homeowner equity landscape has shifted slightly, the underlying market stability holds promise for future growth. As the market continues to normalize, the findings suggest that homeowners are in a solid financial position, paving the way for healthier market dynamics moving forward.