Equity-rich home share falls to lowest level since 2021

"The share of equity-rich homes rose in only three states compared with the fourth quarter of 2025 and in six states compared with the first quarter of 2025. States with year-over-year increases included Illinois (up from 31.5% to 33.5%), Alaska (up from 31.7% to 33.5%), South Dakota (up from 51.3% to 52.4%), North Dakota (up from 31.9% to 32.8%), New York (up from 54.1% to 54.4%) and Wisconsin (up from 49.3% to 49.5%)."

"States with the largest year-over-year declines were Florida (down from 49.3% to 43.2%), Arizona (down from 49.8% to 44.2%), Colorado (down from 45.8% to 40.5%), North Carolina (down from 47.2% to 42.1%) and Texas (down from 47.4% to 42.5%). Vermont had the highest share of equity-rich homes at 85.7%, followed by New Hampshire (58.1%), Montana (57.7%), Rhode Island (57.2%) and Hawaii (55.8%)."

43.3% of mortgaged U.S. residential properties were equity-rich in the first quarter of 2026, down from 44.6% in the prior quarter and the lowest equity-rich rate since the fourth quarter of 2021. Seriously underwater properties accounted for 3.2% of mortgaged homes, with combined loan balances at least 25% above estimated market value. This share rose from 3% in the prior quarter and 2.8% a year earlier. Homeowner equity stayed relatively strong overall, but moderation appeared as mortgage rates increased and home prices cooled. Equity-rich homes declined in most markets, while seriously underwater properties edged up across much of the country. Equity-rich shares rose in only three states versus the prior quarter and in six states versus the first quarter of 2025.

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