ATTOM: Equity-Rich Homeowners Decline as Underwater Mortgages Rise 

According to ATTOM’s Q1 2026 U.S. Home Equity & Underwater Report, some 43.3% of the nation’s mortgaged residential properties were equity-rich, which means that the total estimated loan balances secured by those properties were less than half of their estimated market value. This was the lowest percentage of equity-rich residential properties since Q4 of 2021, down from 44.6% in the preceding quarter.

In Q1 of 2026, roughly 3.2% of mortgaged residential properties nationwide were deemed substantially underwater, which means that the total estimated sums of the loans secured by the properties exceeded their estimated market value by at least 25%. This increased from 2.8% in Q1 of 2025 and 3% in the preceding quarter.

“Homeowner equity remains relatively strong overall, but we’re seeing signs of moderation,” said Rob Barber, CEO at ATTOM. “As mortgage rates have risen and home prices have cooled, the share of equity-rich homes has declined in most markets while the rate of seriously underwater properties is edging up across much of the country.”

Just three states had an increase in the proportion of equity-rich households from Q4 of 2025, while some six states saw an increase from Q1 of 2025.

Regional Trends, Differences & Equity Shifts

The states that saw year-over-year (YoY) increases in their shares of equity-rich homes were:

1. Illinois (up from 31.5%to 33.5%)
2. Alaska (up from 31.7% to 33.5%)
3. South Dakota (up from 51.3% to 52.4%)
4. North Dakota (up from 31.9% to 32.8%)
5. New York (up from 54.1% to 54.4%)
   

The states with the largest YoY drops in their shares of equity-rich homes were:

1. Florida (down from 49.3% to 43.2%)
2. Arizona (down from 49.8% to 44.2%)
3. Colorado (down from 45.8% to 40.5%)
4. North Carolina (down from 47.2% to 42.1%)
5. Texas (down from 47.4% to 42.5%)
   

The states with the highest shares of equity rich homes in Q1 of 2026 were:

1. Vermont (85.7%)
2. New Hampshire (58.1%)
3. Montana (57.7%)
4. Rhode Island (57.2%)
5. Hawaii (55.8%)

In some 44 states and the District of Columbia, the percentage of substantially underwater mortgaged residential properties increased quarter-over-quarter, and in 45 states and the District of Columbia, it increased year-over-year.

The markets with the largest annual increases in their shares of seriously underwater properties were:

1. District of Columbia (up from 3.8% to 5.3%)
2. Mississippi (up from 6.6% to 8%)
3. Louisiana (up from 10.5% to 11.8%)
4. Kentucky (up from 7.3% to 8.5%)
5. Oklahoma (up from 5.5% to 6.6%)
   

In some 87% (93) of the 107 metropolitan statistical regions in ATTOM’s survey, the proportion of equity-rich properties decreased quarter-over-quarter. Metro areas with a population of 500,000 or more were included. In 86 percent (92) of the markets, the proportion of equity-rich properties decreased from the previous year.

The metro areas with the highest rates of equity rich homes in Q1 of 2026 were:

1. San Jose, CA (65.2%)
2. Los Angeles (59.3%)
3. San Diego (58.2%)
4. Portland, ME (57.9%)
5. Buffalo, NY (56.7%)

The metros with the lowest rates of equity rich homes were:

1. Baton Rouge, LA (17.4%)
2. New Orleans (19.1%)
3. Little Rock, AR (23.7%)
4. Jackson, MS (25.6%)
5. Baltimore (26.9%)

Further, in some 28.2% (2,564) of the 9,084 zip codes that were part of ATTOM’s analysis, at least half of the mortgaged properties were equity-rich in Q1 of 2026. According to the Q1 2026 U.S. Home Equity & Underwater Report, 3.2% of mortgaged homes were substantially underwater and 43.3% of mortgaged homes were equity-rich. In most U.S. areas, underwater rates rose while equity-rich rates decreased due to rising mortgage rates and declining home prices. National homeowner equity levels are still comparatively healthy notwithstanding this reduction.

To read the full report, click here.