New data from Attom, a property data and real estate analytics company, shows that New Jersey is one of only 11 states to see an increase in the percentage of “equity-rich” homes over the past year. Equity-rich homes are defined as properties where the combined loan balances secured by a mortgage are no more than half the home’s estimated market value.
According to Attom’s third-quarter 2025 U.S. Home Equity & Underwater Report, 46.1% of mortgaged homes nationwide were considered equity rich in Q3 2025, down from 47.4% in the previous quarter and 48.3% in Q3 2024. This decrease comes despite the national median home price reaching a record $370,000.
In contrast to this national trend, New Jersey saw its share of equity-rich homes rise by 1.8 percentage points—from 52% in Q3 2024 to 53.8% in Q3 2025. Only Alaska experienced a larger increase, with its share rising by 2.4 percentage points to reach 34.3%.
States that saw significant declines in their shares of equity-rich homes include Florida (down from 52.5% to 46%), Arizona (down from 50% to 44.5%), Colorado (down from 48% to 43%), the District of Columbia (down from 34.1% to 29.2%), and Georgia (down from 46.3% to 41.8%).
The report also indicates that during Q3 2025, about 2.8% of mortgaged residential properties across the United States were classified as “seriously underwater.” These are properties where total loans exceed the property’s estimated market value by at least 25%. The highest rates of seriously underwater homes were found in Louisiana (11.2%), Mississippi (6.6%), Kentucky (6%), Arkansas (5.7%), and Iowa (5.6%).
“Over the past year, the share of equity-rich homes has eased slightly while the portion of seriously underwater properties has edged up,” said Rob Barber, CEO of ATTOM. “After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing. The modest fluctuations seen over the last few quarters may suggest a housing market that’s finding balance after an extended period of appreciation.”
