A total of 44.6% of mortgaged residential properties were considered equity-rich in the fourth quarter of 2025, according to a data report from ATTOM. This is down from 46.1% in the third quarter and further down from the recent peak of 49.2% in the second quarter of 2024.
The fourth quarter’s level marked the lowest share of equity rich properties since the fourth quarter of 2021. ATTOM observed the states posting the highest shares of equity-rich mortgaged homes were largely concentrated in the Northeast and West, most notably in Vermont where 87% of mortgaged homes classified as equity-rich, followed by New Hampshire (60.2%), Rhode Island (59.4%), Maine (58.1%), and Montana (57.3%).
On the other end of the spectrum, 3% of mortgaged homes were considered seriously underwater, up from 2.8% in the third quarter. ATTOM defined “seriously underwater” as being in a financial state where combined estimated loan balances exceeded estimated market values by at least 25%.
“After years of rapid gains, homeowner equity is settling into a more sustainable range, and that’s not a negative sign for the market,” said Rob Barber, CEO at ATTOM. “Even with a modest pullback in equity-rich properties and a slight uptick in seriously underwater homes, overall equity levels remain remarkably strong by historical standards. As we move toward the spring buying season, these numbers suggest a housing market that is stabilizing rather than overheating, giving homeowners a solid financial foundation while allowing for healthier market dynamics.”
