According to ATTOM’s Q2 2025 U.S. Home Equity & Underwater Report, 47.4% of the nation’s mortgaged residential properties 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 Q2 total was up from 46.2% in Q1, reversing a recent trend where the share of equity-rich homes had declined for three straight quarters after peaking at 49.2 percent in Q2 of 2024.
An analysis of data also found that 2.7% of mortgaged residential properties in the U.S. were seriously underwater in Q2, meaning the combined estimated balance of loans secured by the properties were at least 25% more than the properties’ estimated market values. That was down slightly from 2.8% the previous quarter, but still higher than the 2.4% share posted in Q2 of 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.”
Equity-Rich Homes: A Regional Look
Quarter-over-quarter, the share of equity-rich homes rose in 37 states and in D.C., but only 19 states had higher equity-rich rates in Q2 of 2025 than they did at the same time last year. The states reporting the largest annual increases in the proportion of equity-rich homes were
- Connecticut (up from 45.5% to 49.4%)
- New Jersey (up from 50% to 53.6%)
- Alaska (up from 31% to 33.7%)
- West Virginia (up from 33.6% to 36.4%)
- Wyoming (up from 43.5% to 45.3%)
The largest annual drops in the proportion of equity-rich homes were reported in:
- Florida (down from 56% to 48.5%)
- Arizona (down from 53.9% to 48.6%)
- Georgia (down from 47.9% to 43.3%)
- Colorado (down from 50.7% to 46.5%)
- Washington (down from 56.5% to 52.4%)
Where Are the Seriously Underwater Homes Located?
The share of seriously underwater homes dropped quarter-over-quarter in 31 states and the District of Columbia, but only eight states had a lower proportion of seriously underwater homes in Q2 of 2025 than they did in Q2 of 2024. The states reporting the largest year-over-year drop in seriously underwater homes were:
- West Virginia (down from 4.7% to 4.3%)
- Mississippi (down from 6.8% to 6.5%)
- Connecticut (down from 1.5% to 1.4%)
- North Dakota (down from 5.02% to 4.97%)
- New Jersey (down from 1.71% to 1.66%)
The markets reporting the largest year-over-year increases in seriously underwater homes were found in:
- Kansas (up from 2.9% to 4.4%)
- Louisiana (up from 10.5% to 11.9%)
- District of Columbia (up from 2.8% to 3.7%)
- Georgia (up from 2.4% to 3.2%)
- Iowa (up from 5.2% to 5.9%)
New England Region High in Equity-Rich Homes
ATTOM reports the states with the highest proportions of equity-rich homes in Q2 of 2025 were found in:
- Vermont (84.9%)
- New Hampshire (60.3%)
- Rhode Island (60.3%)
- Montana (59.2%)
- Hawaii (59.2%)
The markets reporting the lowest proportion of equity-rich homes were found in:
- Louisiana (18%)
- North Dakota (30.2%)
- District of Columbia (32.7%)
- Iowa (33%)
- Alaska (33.7%)
Ranking the Nation’s Most Equity-Rich Counties
The state of Michigan was home to 10 of the 25 counties with the highest share of equity-rich homes in the nation as ATTOM’s analysis included counties with at least 2,500 homes with a mortgage in Q2. The leading counties were reported in:
- Chittenden County, Vermont (90.7%)
- Marquette, Michigan (90.1%)
- Portage County, Wisconsin (89.8%)
- Chippewa County, Michigan (89.7%)
- Manistee County, Michigan (89.3%)
On the other end of the spectrum, the Bayou State of Louisiana had 19 of the 25 counties with the worst equity-rich rates in the nation, with the smallest share of equity-rich homes found in:
- Vernon Parish, Louisiana (5.9%)
- Iberville Parish, Louisiana (8.4%)
- Ascension Parish, Louisiana (8.7%)
- Acadia Parish, Louisiana (9.3%)
- Long County, Georgia (10.2%)
Click here for more on ATTOM’s analysis of the U.S. Q2 home equity and underwater home market.
