According to ATTOM’s just released Q4 2024 U.S. Home Equity & Underwater Report, in the fourth quarter, 47.7 percent of mortgaged residential properties in the United States were classified as equity-rich. This means the total loan balances secured by these properties did not exceed 50 percent of their estimated market values.
The latest home equity and underwater analysis compiled by ATTOM found that figure dipped slightly from 48.3 percent in the third quarter of 2024 and a recent peak of 49.2 percent in the previous three-month period. However, it remained above the 46.1 percent recorded in the fourth quarter of 2023 and continued to reflect historically high levels, highlighting one of the key benefits of the nation’s 13-year housing market boom.
ATTOM’s fourth-quarter home equity and underwater report noted that 47.7 percent of mortgaged homes were classified as equity-rich, significantly higher than the 26.5 percent recorded in early 2020. While this figure declined in 33 of the 50 U.S. states from the third to the fourth quarter—mostly by less than two percentage points—it remained higher year-over-year in 41 states.
The report also noted that during the fourth quarter of 2024, Annual gains were seen across nearly all regions and price segments of the U.S. housing market, with low- and mid-priced markets—particularly in the Midwest and Northeast—experiencing the greatest benefits. However, these areas also saw slightly larger quarterly declines toward the end of the year, signaling a shift in that trend.
ATTOM’s latest analysis also mentioned that Rhode Island led the annual increases in equity-rich mortgaged homes (portion of mortgaged homes considered equity-rich increased from 54.6 percent in the fourth quarter of 2023 to 60.8 percent in the fourth quarter of 2024). Significant growth was also recorded in Missouri (up from 37.3 percent to 43 percent), Connecticut (up from 42.4 percent to 47.9 percent), New Jersey (up from 46.8 percent to 52.3 percent), and Illinois (up from 28 percent to 33 percent).
The fourth quarter report stated that conversely, equity-rich levels saw slight declines across western states. The most significant year-over-year decreases in the fourth quarter occurred in Florida (down, year over year, from 54.3 percent to 50.9 percent), Utah (down from 53.7 percent to 51.1 percent), Arizona (down from 52.7 percent to 50.9 percent), Oregon (down from 51.2 percent to 49.6 percent), and Idaho (down from 57.6 percent to 56.1 percent).
In this post, we dive into the data behind our fourth-quarter Home Equity and Underwater Report to uncover those top metropolitan statistical areas, among metro areas with a population greater than 500,000 in Q4, 2024, with the highest percentages of equity-rich properties in Q4 2024. Those markets include: San Jose, CA (68.5 percent of properties are equity-rich); Los Angeles, CA (64 percent equity-rich); Portland, ME (63.5 percent equity-rich); San Diego, CA (63.4 percent equity-rich); Buffalo, NY (60.9 percent equity-rich); Knoxville, TN (60.5 percent equity-rich); Miami, FL (60.3 percent equity-rich); San Francisco, CA (59.4 percent equity-rich); Providence, RI (59.4 percent equity-rich); and Oxnard, CA (57.5 percent equity-rich).
Want to learn more about home equity and underwater trends in your area? Contact us to find out how!
Written by: Megan Hunt