ATTOM reported that 43.3% of mortgaged U.S. residential properties were considered equity-rich in the first quarter of 2026.

The figure dropped from 44.6% in the previous quarter — marking the lowest equity-rich rate since the fourth quarter of 2021.

Meanwhile, 3.2% of mortgaged residential properties were classified as seriously underwater in the first quarter. Those properties had combined loan balances at least 25% higher than their estimated market value.

That share increased from 3% in the prior quarter and 2.8% a year earlier.

“Homeowner equity remains relatively strong overall, but we’re seeing signs of moderation,” ATTOM stated in the report. “As mortgage rates have risen and home prices have cooled, the share of equity-rich homes has declined in most markets while the rate of seriously underwater properties is edging up across much of the country.”

Equity-rich share falls in most states

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%).

Seriously underwater rates rise broadly

The share of seriously underwater mortgaged properties increased quarter-over-quarter in 44 states and the District of Columbia.

Markets with the largest annual increases included the District of Columbia (up from 3.8% to 5.3%), Mississippi (up from 6.6% to 8%), Louisiana (up from 10.5% to 11.8%), Kentucky (up from 7.3% to 8.5%) and Oklahoma (up from 5.5% to 6.6%).

States with year-over-year declines in seriously underwater properties were North Dakota (down from 4.8% to 4.3%), South Dakota (down from 3.4% to 3%), South Carolina (down from 3.8% to 3.6%) and Wyoming (down from 2.5% to 2.4%).

Louisiana had the highest share of seriously underwater homes at 11.8%, followed by Kentucky (8.5%), Mississippi (8%), Oklahoma (6.6%) and Arkansas (6.4%).

Metro areas show widespread declines

The share of equity-rich homes fell quarter-over-quarter in 93 of 107 metropolitan statistical areas (87%), which included metros with populations of at least 500,000.

Year-over-year, equity-rich shares declined in 92 metros, or 86%.

San Jose, California, had the highest rate of equity-rich homes at 65.2%, followed by Los Angeles (59.3%), San Diego (58.2%), Portland, Maine (57.9%) and Buffalo, New York (56.7%).

The lowest rates were in Baton Rouge, Louisiana (17.4%); New Orleans (19.1%); Little Rock, Arkansas (23.7%); Jackson, Mississippi (25.6%); and Baltimore (26.9%).

Baton Rouge also had the highest rate of seriously underwater homes at 11.9%, followed by Jackson (10.4%), New Orleans (10.2%), Little Rock (7.1%) and Memphis, Tennessee (7%).

Michigan counties lead in equity-rich properties

Of the 30 counties with the highest share of equity-rich properties, 23 were in Midwestern states — including 11 in Michigan, seven in Wisconsin and four in Indiana.

The counties with the highest proportions of equity-rich homes were Benzie County, Michigan (94.5%); Manistee County, Michigan (92.3%); Marquette County, Michigan (91.2%); Portage County, Wisconsin (89.5%); and Chippewa County, Michigan (89.5%).

Lowest rates were in Vernon Parish, Louisiana (6.2%); Ascension Parish, Louisiana (7.2%); Saint Bernard Parish, Louisiana (7.2%); Iberville Parish, Louisiana (8.7%); and Greenup County, Kentucky (10.6%).

At least half of mortgaged properties were equity-rich in 28.2% — 2,564 — of the 9,084 ZIP codes included in the analysis.

This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.