An estimated 46.1% of mortgaged residential properties in the nation were equity-rich, meaning that the total estimated loan balances secured by those properties were no more than half of their estimated market value, according to ATTOM’s Q3 2025 U.S. Home Equity & Underwater Report.
Even though the national median home price increased to a record $370,000 in Q3 of 2025, that was lower than 47.4% in the previous quarter and 48.3% at the same time last year.
In Q3 of 2025, around 2.8% of mortgaged residential properties in the U.S. were deemed substantially underwater, which means that the total estimated balance of loans secured by the properties exceeded the estimated market value of the homes by at least 25%. This was an increase from 2.5% in Q3 of 2024 and 2.7% in the second quarter.
“Over the past year, the share of equity-rich homes has eased slightly while the portion of seriously underwater properties has edged up,” said Rob Barber, CEO of ATTOM. “After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing. The modest fluctuations seen over the last few quarters may suggest a housing market that’s finding balance after an extended period of appreciation.”
Less Than Half of States Have a Higher Percentage of Equity-Rich Homes
In 19 states, the proportion of equity-rich households increased from the second quarter of 2025, while in 11 states, it increased from Q3 of 2024.
The states with the largest year-over-year increases in the share of equity-rich homes were:
- Alaska (up from 31.9% in Q3 2024 to 34.3% in Q3 2025)
- Illinois (up from 34% to 35.8%)
- New Jersey (up from 52% to 53.8%)
- New York (up from 55.2% to 57%)
- Connecticut (up from 47.7% to 49.1%)
The markets with the largest year-over-year drops in their shares of equity-rich homes were:
- Florida (down from 52.5% in Q3 2024 to 46% in Q3 2025)
- Arizona (down from 50% to 44.5%)
- Colorado (down from 48% to 43%)
- District of Columbia (down from 34.1% to 29.2%)
- Georgia (down from 46.3% to 41.8%)
In 35 states, the percentage of mortgaged houses deemed substantially underwater increased from quarter to quarter, and in 46 states, it increased from year to year. The percentage of mortgaged homes deemed substantially underwater increased in 46 states from the previous year and in 35 states from the previous quarter.
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