According to ATTOM’s Q3 2025 U.S. Home Equity & Underwater Report, 46.1% 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 total was down 1.3% from the previous quarter, and 48.3 percent at the same time last year even though the national median home price rose to a record $370,000 in the third quarter of 2025.
Approximately 2.8% of mortgaged residential properties in the U.S. were considered seriously underwater in Q3 of 2025, defined as the combined estimated balance of loans secured by the properties were at least 25% more than the properties’ estimated market value. That was up from 2.7% in Q2 and 2.5 percent in the third quarter of 2024.
“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.”
A Regional Look at Equity
The share of equity-rich homes rose in 19 states compared to Q2 of 2025, and in 11 states compared to Q3 of 2024. The states reporting 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 reporting the largest year-over-year decreases in their shares of equity-rich homes were found in:
- 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%)
Seriously Underwater Homes on the Rise
The share of mortgaged properties considered seriously underwater rose in 35 states quarter-over-quarter, and in 46 states year-over-year. Markets reporting the largest annual increases in their proportion of seriously underwater homes were found in:
- District of Columbia (up from 3.3% in Q3 2024 to 5.1% in Q3 2025)
- Maryland (up from 2.4% to 3.5%)
- Louisiana (up from 10.1% to 11.2%)
- Georgia (up from 2.6% to 3.6%)
- Oklahoma (up from 4.8% to 5.4%)
The states recording the largest annual dips in seriously underwater rates were:
- Mississippi (down from 7.2% in Q3 2024 to 6.6% in Q3 2025)
- Wyoming (down from 2.4% to 2.2%)
- Vermont (down from 0.7% to 0.6%)
- South Dakota (down from 3.1% to 3%)
- New York (down from 1.8% to 1.7%)
A Majority of Metros Report Equity-Rich Homes Falling YoY
The states with the highest rates of equity-rich homes in Q3 were:
- Vermont (86.8% equity-rich)
- New Hampshire (61.4%)
- Rhode Island (59.8%)
- Maine (58.6%)
- Montana (57.8%)
The markets reporting the lowest rates of equity-rich homes were:
- Louisiana (18.6% equity-rich)
- Maryland (29.1%)
- District of Columbia (29.2%)
- North Dakota (32.6%)
- Oklahoma (33.7%)
The share of equity-rich homes fell quarter-over-quarter in 71.8% of the 110 metropolitan statistical areas in ATTOM’s analysis with populations of at least 500,000. Year-over-year, the share of equity-rich homes was down in 77.3% of the 110 metro areas.
The metro areas with the highest rates of equity-rich homes in Q3 2025 were:
- San Jose, California (65.8% equity-rich)
- Buffalo, New York (63.5%)
- Portland, Maine (61.2%)
- Los Angeles, California (60.5%)
- Syracuse, New York (59.9%)
The metros reporting the smallest shares of equity-rich homes were:
- Baton Rouge, Louisiana (14.8% equity-rich)
- New Orleans, Louisiana (23.5%)
- Little Rock, Arkansas (28.3%)
- Baltimore, Maryland (28.4%)
- Des Moines, Iowa (29.3%)
