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Nathalie Pacheco

Nathalie Pacheco

Almost Half of US Homes Are Now 'Equity-Rich': ATTOM

Homeowner equity in the U.S. saw a significant boost in the second quarter of 2024, with nearly half of all mortgaged homes considered "equity-rich." This increase, driven by rising home values, ended a trend of declining equity and also reduced the proportion of "seriously underwater" homes to the lowest level since at least 2019. The strongest gains were observed in more affordable markets in the South and Midwest, reflecting the ongoing strength of the housing market despite affordability challenges for new buyers.

August 12, 2024

 Almost Half of US Homes Are Now 'Equity-Rich': ATTOM
Photo by Karolina Kaboompics

The recent surge in home values has been a boon for homeowner equity, despite being a hurdle for prospective buyers. According to ATTOM Data Solutions, 49.2% of mortgaged homes in the U.S. were considered "equity-rich" in the second quarter of 2024, meaning the loan balance was less than half of the home's estimated market value. This marks a 3.4 percentage point increase from the first quarter, ending a three-quarter trend of declines.

Moreover, the proportion of homes classified as "seriously underwater" — where the mortgage balance exceeds 25% of the property’s value — dropped to 2.4%, the lowest level observed since at least 2019. ATTOM's CEO, Rob Barber, attributed this positive shift to rising home prices bolstering equity, particularly in the more affordable markets of the South and Midwest.

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States like Kentucky, Illinois, Missouri, Oklahoma, and Alabama saw the largest quarterly gains in equity-rich homes, while states such as Louisiana and Mississippi still had notable shares of seriously underwater properties. Meanwhile, Vermont, Maine, New Hampshire, Montana, and Rhode Island led the nation with the highest shares of equity-rich homes.

These trends highlight the ongoing impact of the housing market boom, with limited home supply and strong buyer demand potentially driving further equity growth in the coming months.

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