A new data report from ATTOM has determined that 41.1% of mortgaged residential properties in the second quarter were equity-rich, down from 43.3% in the first quarter and from 47.4% in the second quarter of 2025. After four straight quarters of decline, the national share of equity-rich homes is at its lowest point in nearly five years.
At the same time, 3.2% of properties in the second quarter were considered seriously underwater, unchanged from the first quarter but up from 2.7% in the first quarter of 2025.
The states that experienced year-over-year increases in their shares of equity-rich homes were North Dakota (up from 30.2% to 32.9% equity-rich); South Dakota (up from 52.1% to 53.6%); Kentucky (up from 35.1% to 36.5%); and Wyoming (up from 45.3% to 46.6%).
The states with the largest annual drops in their shares of equity-rich homes were Minnesota (down from 37.6% to 20.1% equity-rich); Michigan (down from 50.8% to 39.3%); California (down from 56.9% to 45.6%); Washington (down from 52.4% to 43.2%); and Missouri (down from 46.1% to 37.8%).
“These two measures of home equity strength, the rates of equity-rich and seriously underwater homes, remain healthier than they were prior to 2020,” said Rob Barber, CEO of ATTOM. “However, both have been moving in less favorable directions over the past year, suggesting a trend worth watching.”
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