IRVINE, CA — Nearly half of U.S. mortgaged residential properties remained equity-rich during the fourth quarter of 2024, though the percentage dipped slightly to 47.7 percent from 48.3 percent in the prior quarter, according to ATTOM’s latest U.S. Home Equity & Underwater Report. Despite the slight decline, the share remains historically high, underscoring the gains driven by a 13-year housing market boom.
The report also revealed that the portion of homes considered seriously underwater, where loan balances exceed market values by 25 percent or more, held steady at 2.5 percent—the same rate recorded in the third quarter of 2024 and near the six-year low.
ATTOM CEO Rob Barber highlighted the stability of home equity gains, despite seasonal market slowdowns. “The last few months of 2024 marked pretty much a holding pattern for the housing market. That’s typical for the slower Fall home buying season. But it certainly wasn’t a downer for homeowners across the country who are sitting on historically high levels of property equity,” he said.
Regional Variations in Equity Levels
While most states saw minor quarterly declines in equity-rich properties, levels remained far above pre-pandemic figures. Notably, Rhode Island experienced a sharp annual increase, with equity-rich properties rising from 54.6 percent in late 2023 to 60.8 percent at the end of 2024. Other strong performers included Missouri, Connecticut, and New Jersey.
Conversely, western states such as Florida, Utah, and Arizona recorded slight year-over-year decreases in equity-rich properties. Vermont led the country with 86.7 percent of its mortgaged homes classified as equity-rich.
Serious underwater rates showed little regional change, though Midwest and Southern states recorded the highest shares, led by Louisiana at 9.5 percent.
Market Momentum into 2025
Barber expressed cautious optimism for the months ahead, noting, “We are likely to see more of the same steady pace over the next few months before heading into the Spring buying season, which will say a lot about whether the housing market keeps roaring ahead and boosts home equity even further.”
The report’s findings highlight the resilience of home equity levels, even as the market adjusts to broader economic challenges and varying regional dynamics.
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