What Is the Share of Seriously Underwater Mortgages in Q1 2026?
In the first quarter of 2026, the percentage of seriously underwater properties across the U.S. increased quarterly and annually.
Percentage of Seriously Underwater Properties: 3.2 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 3 percent in Q4, 2025
Year-over-year change: up from 2.8 percent in Q1, 2025
The states with the highest shares of seriously underwater homes in the first quarter were: Louisiana, Kentucky, Mississippi, Oklahoma, Arkansas.
What’s Driving Q1 2026 Underwater Trends?
The share of seriously underwater homes continued to edge higher in the first quarter of 2026, reaching 3.2 percent of mortgaged homes nationwide, up from 3 percent in the prior quarter and 2.8 percent a year earlier. The increase was broad-based, with seriously underwater rates rising quarter-over-quarter in 44 states and the District of Columbia and rising year-over-year in 45 states and the District of Columbia. Homeowner equity remains relatively strong overall, but the data show signs of moderation as the share of seriously underwater properties edges up across much of the country.
Percentage of Seriously Underwater Rates by State – Q1 2026
Below is the complete state-by-state ranking for the first quarter of 2026, listing each state’s share of seriously underwater properties and the top four counties with the highest percentages of seriously underwater homes.
1. Louisiana
11.8% seriously underwater, up from 10.7% last quarter and up from 10.5% last year
Counties: Vernon, Webster, Iberville, De Soto
2. Kentucky
8.5% seriously underwater, up from 7.9% last quarter and up from 7.3% last year
Counties: Adair, Pike, Greenup, Hopkins
3. Mississippi
8% seriously underwater, down from 8.3% last quarter and up from 6.6% last year
Counties: Washington, Lauderdale, Tate, Pike
4. Oklahoma
6.6% seriously underwater, up from 5.4% last quarter and up from 5.5% last year
Counties: Okmulgee, Pontotoc, Stephens, Garfield
5. Arkansas
6.4% seriously underwater, up from 5.6% last quarter and up from 5.8% last year
Counties: Columbia, Arkansas, Union, Hot Spring
6. Iowa
6% seriously underwater, up from 5.8% last quarter and up from 5.7% last year
Counties: Lee, Tama, Henry, Black Hawk
7. Kansas
5% seriously underwater, down from 5.3% last quarter and up from 4.7% last year
Counties: Dickinson, Finney, Wyandotte, Johnson
8. Missouri
4.9% seriously underwater, up from 4.6% last quarter and up from 4.7% last year
Counties: Butler, Dunklin, Saint Louis City, Scott
9. Illinois
4.9% seriously underwater, up from 4.7% last quarter and up from 4.8% last year
Counties: Mcdonough, Saline, Mason, Warren
10. West Virginia
4.5% seriously underwater, up from 4.4% last quarter and up from 4.2% last year
Counties: Harrison, Mercer, Wayne, Cabell
11. North Dakota
4.3% seriously underwater, up from 4.2% last quarter and down from 4.8% last year
Counties: Stutsman, Stark, Williams, Richland
12. Nebraska
4.3% seriously underwater, up from 4.2% last quarter and up from 4.1% last year
Counties: Scotts Bluff, Gage, Lincoln, Madison
13. Pennsylvania
4.3% seriously underwater, up from 3.9% last quarter and up from 3.9% last year
Counties: Greene, Jefferson, Philadelphia, Fayette
14. Ohio
4.3% seriously underwater, up from 4% last quarter and up from 4.1% last year
Counties: Belmont, Pike, Coshocton, Scioto
15. Maryland
3.8% seriously underwater, up from 3.7% last quarter and up from 2.9% last year
Counties: Baltimore City, Dorchester, Allegany, Somerset
16. Alabama
3.7% seriously underwater, up from 3.6% last quarter and up from 3.4% last year
Counties: Dallas, De Kalb, Montgomery, Walker
17. Indiana
3.7% seriously underwater, up from 3.3% last quarter and up from 3% last year
Counties: Miami, Jackson, Shelby, Washington
18. Tennessee
3.7% seriously underwater, up from 3.4% last quarter and up from 3.1% last year
Counties: Dyer, Lauderdale, Haywood, Obion
19. South Carolina
3.6% seriously underwater, up from 3.4% last quarter and down from 3.8% last year
Counties: Darlington, Laurens, Clarendon, Chesterfield
20. Georgia
3.5% seriously underwater, down from 3.5% last quarter and up from 3.1% last year
Counties: Decatur, Berrien, Colquitt, Muscogee
21. Wisconsin
3.5% seriously underwater, up from 3.4% last quarter and up from 3.4% last year
Counties: Taylor, Rusk, Monroe, Vernon
22. New Mexico
3.3% seriously underwater, up from 3% last quarter and up from 2.8% last year
Counties: Rio Arriba, Lea, Eddy, Los Alamos
23. Michigan
3.1% seriously underwater, up from 2.8% last quarter and up from 2.9% last year
Counties: Gogebic, Wayne, Branch, Cass
24. North Carolina
3.1% seriously underwater, up from 2.9% last quarter and up from 2.5% last year
Counties: Caswell, Vance, Edgecombe, Bladen
25. Minnesota
3% seriously underwater, up from 2.8% last quarter and up from 2.7% last year
Counties: Koochiching, Pennington, Hubbard, Wadena
26. South Dakota
3% seriously underwater, up from 2.9% last quarter and down from 3.4% last year
Counties: Yankton, Union, Minnehaha, Meade
27. Colorado
2.8% seriously underwater, up from 2.7% last quarter and up from 2.3% last year
Counties: Otero, Las Animas, Logan, Morgan
28. Delaware
2.8% seriously underwater, up from 2.5% last quarter and up from 2.4% last year
Counties: Sussex, Kent, New Castle
29. Idaho
2.8% seriously underwater, up from 2.6% last quarter and up from 2.5% last year
Counties: Valley, Shoshone, Franklin, Jerome
30. Utah
2.6% seriously underwater, up from 2.6% last quarter and up from 2.6% last year
Counties: Washington, Sevier, Box Elder, Carbon
31. Texas
2.6% seriously underwater, up from 2.3% last quarter and up from 2.3% last year
Counties: Starr, Lamar, Gray, Jim Wells
32. Maine
2.5% seriously underwater, up from 2.2% last quarter and up from 2.1% last year
Counties: Aroostook, Washington, Franklin, Piscataquis
33. Wyoming
2.4% seriously underwater, up from 2.3% last quarter and down from 2.5% last year
Counties: Campbell, Converse, Carbon, Uinta
34. Virginia
2.4% seriously underwater, up from 2.4% last quarter and up from 1.97% last year
Counties: Greene, Brunswick, Fluvanna, Pittsylvania
35. Florida
2.4% seriously underwater, up from 2.3% last quarter and up from 1.64% last year
Counties: Charlotte, Jackson, Gadsden, Marion
36. Arizona
2.2% seriously underwater, up from 2.1% last quarter and up from 1.81% last year
Counties: Santa Cruz, Graham, Navajo, Pinal
37. Oregon
2.2% seriously underwater, up from 2.1% last quarter and up from 1.8% last year
Counties: Jefferson, Malheur, Wasco, Coos
38. Alaska
2.2% seriously underwater, up from 2.1% last quarter and up from 2.2% last year
Counties: Matanuska-Susitna, Fairbanks North Star, Anchorage, Kenai Peninsula
39. Washington
2.1% seriously underwater, same as 2.1% last quarter and up from 1.93% last year
Counties: Pacific, Chelan, Grays Harbor, Stevens
40. Nevada
2.1% seriously underwater, up from 1.88% last quarter and up from 1.64% last year
Counties: Nye, Elko, Lyon, Churchill
41. Montana
1.93% seriously underwater, down from 2.2% last quarter and up from 1.89% last year
Counties: Yellowstone, Lewis And Clark, Silver Bow, Missoula
42. New York
1.89% seriously underwater, up from 1.81% last quarter and up from 1.84% last year
Counties: Saint Lawrence, Herkimer, Franklin, Cattaraugus
43. New Jersey
1.83% seriously underwater, up from 1.75% last quarter and up from 1.71% last year
Counties: Salem, Cumberland, Mercer, Hudson
44. Hawaii
1.81% seriously underwater, down from 1.89% last quarter and up from 1.33% last year
Counties: Maui, Honolulu, Hawaii, Kauai
45. California
1.7% seriously underwater, up from 1.66% last quarter and up from 1.34% last year
Counties: Trinity, Lake, Plumas, Siskiyou
46. Massachusetts
1.5% seriously underwater, up from 1.3% last quarter and up from 1.2% last year
Counties: Suffolk, Berkshire, Franklin, Hampden
47. New Hampshire
1.3% seriously underwater, up from 1.2% last quarter and up from 1.1% last year
Counties: Coos, Sullivan, Cheshire, Grafton
48. Rhode Island
1.2% seriously underwater, up from 1% last quarter and up from 1% last year
Counties: Bristol, Providence, Kent, Newport
49. Vermont
0.7% seriously underwater, same as 0.7% last quarter and same as 0.7% last year
Counties: Chittenden, Washington, Addison
Conclusion
The findings indicate that seriously underwater mortgage rates remain low across the U.S., but the first quarter of 2026 showed continued upward movement both quarterly and annually. Nationally, seriously underwater homes accounted for 3.2 percent of mortgaged properties, up from 3 percent in the prior quarter and 2.8 percent a year earlier, while the highest state-level rates were in Louisiana, Kentucky, Mississippi, Oklahoma, and Arkansas. Read ATTOM’s full first-quarter 2026 U.S. Home Equity & Underwater Report here.
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