U.S. Homeowner Equity Eases Slightly In Q4 2025 While Seriously Underwater Rates Stay Near Historic Lows

Equity-rich properties down slightly from Q3 2025 peak, but still well above pre-pandemic levels

Published on Feb. 13, 2026

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According to ATTOM's latest U.S. Home Equity & Underwater Report, 44.6% of mortgaged residential properties in the United States were considered equity-rich in Q4 2025, down slightly from 46.1% in Q3 2025 but still far above the 26.5% level recorded in early 2020. Meanwhile, the share of seriously underwater properties ticked up modestly to 3.0% in Q4 2025, up from 2.8% in Q3.

Why it matters

The report suggests the housing market is stabilizing after years of rapid equity gains, providing homeowners a solid financial foundation while allowing for healthier market dynamics. While equity-rich levels declined in most states, they remain remarkably strong by historical standards, indicating the market is cooling but not overheating.

The details

The portion of mortgaged homes considered equity-rich decreased in 42 of 49 U.S. states from Q3 2025 to Q4 2025, mostly by less than 2 percentage points. The largest annual decreases were seen in Florida (down from 50.9% to 43.9%), Kentucky (down from 38.5% to 32.1%), and South Carolina (down from 46.7% to 40.9%). However, equity-rich levels increased slightly in a broad cross-section of states, led by Alaska (up from 31.5% to 33.5%), North Dakota (up from 32.4% to 33.7%), and Illinois (up from 33% to 33.7%).

  • The report covers Q4 2025 data, released in February 2026.

The players

ATTOM

A leading provider of property data and analytics for the real estate industry.

Rob Barber

CEO at ATTOM.

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What they’re saying

“After years of rapid gains, homeowner equity is settling into a more sustainable range, and that's not a negative sign for the market.”

— Rob Barber, CEO at ATTOM

The takeaway

The report indicates the U.S. housing market is stabilizing, with homeowner equity levels remaining strong but no longer surging at an unsustainable pace. This suggests a healthier market dynamic that provides a solid financial foundation for homeowners while avoiding overheating concerns.