What Is the Share of Seriously Underwater Mortgages in Q4 2025?
In the fourth quarter of 2025, the percentage of seriously underwater properties across the U.S. increased slightly quarterly and annually.
Percentage of Seriously Underwater Properties: 3 percent of mortgaged residential properties, where the combined estimated loan balances are at least 25 percent more than the property’s estimated market value
Monthly change: up from 2.8 percent in Q3, 2025
Year-over-year change: up from 2.5 percent in Q4, 2024
The states with the highest shares of seriously underwater homes in the fourth quarter were: Louisiana, Mississippi, Kentucky, Iowa, and Arkansas.
What’s Driving Q4 2025 Underwater Trends?
After several years of steady declines, the share of seriously underwater homes has begun to inch higher over the past year, signaling a modest shift in housing market conditions. As of Q4 2025, roughly 3.0 percent of mortgaged homes nationwide were seriously underwater, up from about 2.5 percent a year earlier. Even so, the overall level of serious negative equity remains historically low, reflecting the lasting impact of strong price gains earlier in the decade and generally conservative mortgage lending.
Percentage of Seriously Underwater Rates by State – Q4 2025
Below is the complete state-by-state ranking for the fourth quarter of 2025, listing each state’s share of seriously underwater properties and the top four counties with the highest percentages of seriously underwater homes.
1. Louisiana
10.7% seriously underwater, down from 11.2% last quarter and up from 9.5% last year
Counties: Vernon, De Soto, Calcasieu, Webster
2. Mississippi
8.3% seriously underwater, up from 6.6% last quarter and up from 6.4% last year
Counties: Lauderdale, Washington, Pike, Lafayette
3. Kentucky
7.9% seriously underwater, up from 6.0% last quarter and up from 6.1% last year
Counties: Pike, Adair, Floyd, Greenup
4. Iowa
5.8% seriously underwater, up from 5.6% last quarter and up from 5.3% last year
Counties: Lee, Tama, Henry, Wapello
5. Arkansas
5.6% seriously underwater, down from 5.7% last quarter and up from 5.3% last year
Counties: Columbia, Poinsett, Union, Conway
6. Oklahoma
5.4% seriously underwater, up from 5.4% last quarter and up from 4.9% last year
Counties: Pontotoc, Pittsburg, Woodward, Beckham
7. Kansas
5.3% seriously underwater, up from 4.5% last quarter and up from 4.4% last year
Counties: Finney, Leavenworth, Johnson, Wyandotte
8. Illinois
4.7% seriously underwater, up from 4.2% last quarter and up from 4.5% last year
Counties: Mcdonough, Saline, Marion, Montgomery
9. Missouri
4.6% seriously underwater, up from 4.4% last quarter and up from 4.5% last year
Counties: Dunklin, Butler, Saint Louis City, Scott
10. West Virginia
4.4% seriously underwater, up from 3.9% last quarter and up from 3.9% last year
Counties: Harrison, Mercer, Wayne, Cabell
11. Nebraska
4.2% seriously underwater, up from 3.9% last quarter and up from 3.8% last year
Counties: Scotts Bluff, Gage, Madison, Otoe
12. North Dakota
4.2% seriously underwater, down from 4.7% last quarter and down from 4.7% last year
Counties: Richland, Stark, Stutsman, Williams
13. Ohio
4.0% seriously underwater, up from 3.6% last quarter and up from 3.7% last year
Counties: Pike, Coshocton, Belmont, Lawrence
14. Pennsylvania
3.9% seriously underwater, up from 3.8% last quarter and up from 3.5% last year
Counties: Elk, Greene, Jefferson, Northumberland
15. Maryland
3.7% seriously underwater, up from 3.5% last quarter and up from 2.6% last year
Counties: Baltimore City, Dorchester, Somerset, Wicomico
16. Alabama
3.6% seriously underwater, up from 3.4% last quarter and up from 3.2% last year
Counties: Pike, Tuscaloosa, Geneva, De Kalb
17. Georgia
3.5% seriously underwater, down from 3.6% last quarter and up from 2.8% last year
Counties: Grady, Coffee, Decatur, Muscogee
18. Wisconsin
3.4% seriously underwater, up from 3.3% last quarter and up from 3.2% last year
Counties: Rusk, Taylor, Monroe, Jackson
19. South Carolina
3.4% seriously underwater, up from 3.0% last quarter and up from 2.8% last year
Counties: Darlington, Jasper, Aiken, Clarendon
20. Tennessee
3.4% seriously underwater, up from 3.1% last quarter and up from 2.8% last year
Counties: Haywood, Lauderdale, Smith, Overton
21. Indiana
3.3% seriously underwater, up from 3.0% last quarter and up from 2.7% last year
Counties: Miami, Perry, Vanderburgh, Spencer
22. New Mexico
3.0% seriously underwater, up from 2.8% last quarter and up from 2.4% last year
Counties: Roosevelt, Eddy, Rio Arriba, Lea
23. South Dakota
2.9% seriously underwater, down from 3.0% last quarter and down from 3.2% last year
Counties: Yankton, Union, Minnehaha, Meade
24. North Carolina
2.9% seriously underwater, up from 2.6% last quarter and up from 2.4% last year
Counties: Surry, Vance, Edgecombe, Robeson
25. Minnesota
2.8% seriously underwater, up from 2.6% last quarter and up from 2.5% last year
Counties: Koochiching, Faribault, Hubbard, Wadena
26. Michigan
2.8% seriously underwater, up from 2.5% last quarter and up from 2.5% last year
Counties: Gogebic, Cass, Branch, Genesee
27. Colorado
2.7% seriously underwater, up from 2.6% last quarter and up from 2.2% last year
Counties: Otero, Las Animas, Rio Grande, Logan
28. Utah
2.6% seriously underwater, up from 2.5% last quarter and up from 2.5% last year
Counties: Washington, Sevier, Iron, Wasatch
29. Idaho
2.6% seriously underwater, up from 2.5% last quarter and down from 2.7% last year
Counties: Shoshone, Valley, Franklin, Cassia
30. Delaware
2.5% seriously underwater, down from 2.6% last quarter and up from 2.3% last year
Counties: Kent, Sussex, New Castle
31. Virginia
2.4% seriously underwater, up from 2.1% last quarter and up from 1.9% last year
Counties: Greene, Fluvanna, Charlottesville City, Albemarle
32. Wyoming
2.3% seriously underwater, up from 2.2% last quarter and down from 2.4% last year
Counties: Carbon, Converse, Uinta, Campbell
33. Texas
2.3% seriously underwater, up from 2.3% last quarter and up from 2.1% last year
Counties: Gray, Howard, Cass, Polk
34. Florida
2.3% seriously underwater, up from 2.0% last quarter and up from 1.6% last year
Counties: Charlotte, Hardee, Jackson, Gadsden
35. Maine
2.2% seriously underwater, up from 2.1% last quarter and up from 1.8% last year
Counties: Washington, Aroostook, Piscataquis, Franklin
36. Montana
2.2% seriously underwater, down from 2.4% last quarter and up from 1.8% last year
Counties: Lewis And Clark, Yellowstone, Silver Bow, Cascade
37. Alaska
2.1% seriously underwater, up from 2.0% last quarter and up from 2.1% last year
Counties: Matanuska-Susitna, Fairbanks North Star, Anchorage, Kenai Peninsula
38. Arizona
2.1% seriously underwater, down from 2.4% last quarter and up from 1.7% last year
Counties: Santa Cruz, Cochise, Pinal, Mohave
39. Oregon
2.1% seriously underwater, up from 2.0% last quarter and up from 1.8% last year
Counties: Malheur, Wasco, Coos, Clatsop
40. Washington
2.1% seriously underwater, up from 1.8% last quarter and up from 1.7% last year
Counties: Pacific, Chelan, Adams, Stevens
41. Hawaii
1.9% seriously underwater, up from 1.7% last quarter and up from 1.3% last year
Counties: Maui, Hawaii, Honolulu, Kauai
42. Nevada
1.9% seriously underwater, up from 1.9% last quarter and up from 1.5% last year
Counties: Nye, Elko, Lyon, Churchill
43. New York
1.8% seriously underwater, up from 1.7% last quarter and up from 1.7% last year
Counties: Saint Lawrence, Cattaraugus, Montgomery, Delaware
44. New Jersey
1.7% seriously underwater, up from 1.7% last quarter and up from 1.6% last year
Counties: Salem, Mercer, Cumberland, Hudson
45. California
1.7% seriously underwater, up from 1.6% last quarter and up from 1.3% last year
Counties: Trinity, Mariposa, Lake, Siskiyou
46. Massachusetts
1.3% seriously underwater, up from 1.2% last quarter and up from 1.2% last year
Counties: Suffolk, Berkshire, Hampden, Worcester
47. New Hampshire
1.2% seriously underwater, up from 1.1% last quarter and up from 1.0% last year
Counties: Coos, Grafton, Sullivan, Cheshire
48. Rhode Island
1.0% seriously underwater, up from 1.0% last quarter and up from 0.9% last year
Counties: Bristol, Providence, Kent, Newport
49. Vermont
0.65% seriously underwater, up from 0.6% last quarter and down from 0.7% last year
Counties: Chittenden, Washington, Addison
Conclusion
The findings indicate that seriously underwater mortgage rates continue to remain low across the U.S., and despite year-over-year shifts in certain states, homeowner equity levels overall remain relatively stable. Read ATTOM’s full fourth-quarter 2025 U.S. Home Equity & Underwater Report here.
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