Nearly half of all mortgage holders have significant equity
Home equity levels across the US remained strong in the fourth quarter of 2024, despite a slight quarterly dip in the percentage of equity-rich properties, according to ATTOM’s latest US Home Equity & Underwater Report.
The report revealed that 47.7% of mortgaged residential properties were considered equity-rich—meaning the owner had at least 50% equity in their home. This was down from 48.3% in the third quarter of 2024 and a recent peak of 49.2% in the second quarter. However, it remained above the 46.1% level recorded at the end of 2023.
“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,” said Rob Barber, CEO of ATTOM. “But it certainly wasn’t a downer for homeowners across the country who are sitting on historically high levels of property equity in large part to the endless increases in home values over more than a decade.”
The share of homes with mortgages classified as seriously underwater - where loan balances exceed property values by at least 25% - remained largely unchanged. It stood at 2.5% in the fourth quarter, identical to the third quarter and just slightly lower than 2.6% a year earlier.
Equity trends across the US
While the share of equity-rich properties declined in 33 states from the third to the fourth quarter, it increased annually in 41 states. The strongest yearly gains were seen in Rhode Island (from 54.6% in the Q4 2023 to 60.8% in Q4 2024), Missouri (up from 37.3% to 43%), Connecticut (up from 42.4% to 47.9%), New Jersey (up from 46.8% to 52.3%) and Illinois (up from 28% to 33%). Conversely, western states such as Florida (down, year over year, from 54.3% to 50.9%), Utah (down from 53.7% to 51.1%), Arizona (down from 52.7% to 50.9%), Oregon (down from 51.2% to 49.6%) and Idaho (down from 57.6% to 56.1%) saw slight declines.
The Midwest and Northeast benefited most from the steady market, with lower-cost homes showing the largest annual gains. In contrast, some high-priced markets in the West saw minor quarterly declines.
Among major metropolitan areas, San Jose, CA (68.5%), Los Angeles, CA (64%), Portland, ME (63.5%), San Diego, CA (63.4%), and Buffalo, NY (60.9%) had the highest shares of equity-rich homes.
At the county level, Burlington, VT (91.6%), Beulah, MI (90.3%), and Montpelier, VT (89%) led the nation in equity-rich rates. In contrast, Baltimore, MD (26.9%), Chicago, IL (30.8%), and Prince George’s County, MD (28.6%) had some of the lowest rates.
Outlook
Looking ahead, ATTOM expects equity trends to remain stable in the early months of 2025, with the spring home-buying season serving as a key indicator of future market momentum.
“Nearly half of all mortgage payers in the US have paid off at least half their loans, leaving many with six-figures levels of wealth available,” Barber said.
“We are likely to see more of the same steady pace over the next few months before heading into the Spring buying season.”
Do you have something to say about the recent findings? Share your thoughts in the comments below.
