According to ATTOM’s just released Q3 2024 U.S. Home Equity & Underwater Report, nearly half (48.3%) of mortgaged residential properties in the United States were classified as equity-rich in the third quarter. This means that the total loan balances secured by these properties were no greater than 50% of their estimated market value.
WATCH: ATTOM #FiguresFriday Top Ten Equity-Rich Zips in Q3 2024
The latest home equity and underwater analysis compiled by ATTOM revealed that this figure was slightly lower than the recent peak of 49.2% reached in the second quarter of 2024. However, it was still an increase from 47.4% the previous year and remained historically high, reflecting the lasting impact of a decade-long housing market boom across the country.
ATTOM’s third-quarter home equity and underwater report noted that in the third quarter of 2024, 48.3 percent of mortgaged homes were classified as equity-rich, significantly higher than the 26.5 percent recorded in early 2020. While this figure declined in 28 out of 50 U.S. states from the second to the third quarter of 2024—typically by less than two percentage points—it still showed an annual increase in 37 states.
The report also noted that annual increases were predominantly seen in low- and mid-priced markets, particularly in the Midwest and Northeast regions. Notable growth was recorded in Vermont, where the share of equity-rich mortgaged homes rose from 79.8 percent in the third quarter of 2023 to 86.4 percent in the third quarter of 2024. Other states showing significant increases included West Virginia (up from 30.5 percent to 37 percent), Connecticut (up from 41.5 percent to 47.7 percent), New Jersey (up from 45.9 percent to 52 percent), and Rhode Island (up from 54.7 percent to 60.6 percent).
ATTOM’s latest analysis also mentioned that conversely, equity-rich levels declined more frequently in western states. Notable decreases included Utah, which fell from 56.8 percent to 52.4 percent year over year, Arizona (down from 54.3 percent to 50 percent), Colorado (down from 51.1 percent to 48 percent), Washington (down from 56.7 percent to 54.6 percent), and Oregon (down from 52.7 percent to 50.8 percent).
According to the findings, out of 9,144 U.S. zip codes with at least 2,000 residential properties with mortgages in the third quarter of 2024, 4,102 zip codes (44.9 percent) had at least half of their mortgaged residential properties classified as equity-rich. Among the top 50 equity-rich zip codes, 31 were located in California, Massachusetts, or Texas, including six in Irvine, CA, and three each in Santa Barbara, CA, and Houston, TX.
In this post, we dive deep into the data behind our Third Quarter Home Equity and Underwater Report to uncover the top ten zip codes among those with at least 2,000 outstanding mortgages in Q3 2024 that have the highest percentages of equity-rich properties. Those zips include: 49855 – Marquette, MI (88.6 percent); 92657 – Newport Coast, CA (85.7 percent); 54843 – Hayward, WI (85.5 percent); 76115 – Fort Worth, TX (85 percent); 92620 – Irvine, CA (84.9 percent); 57702 – Rapid City, SD (84.5 percent); 94024 – Los Altos, CA (84 percent); 08243 – Sea Isle City, NJ (83.9 percent); 92606 – Irvine, CA (83.6 percent); and 92602 – Irvine, CA (83.6 percent).
Want to learn more about home equity and underwater trends in your area? Contact us to find out how!
