Home equity in the United States saw a slight decline by the end of 2025, signaling a slowdown in the housing market following the significant post-pandemic boom, though it continues to rest on a solid financial foundation.
According to data from ATTOM, the share of homes with high equity reached 44.6% in the final quarter, marking a modest decrease from previous periods but remaining well above pre-pandemic levels. Meanwhile, financially distressed homes edged up marginally to just 3%, a level close to historic lows, reflecting overall market stability.
The decline was widespread across most states, particularly in southern states and the Sun Belt, such as Florida, Arizona, and South Carolina, while some Northeastern and Midwestern states recorded slight increases in home equity.
Mortgage delinquencies also remained limited, with improvements seen in some western states, contrasted by a relative rise in southern states such as Louisiana and Mississippi.
Coastal and Northeastern states topped the rankings for the highest home equity values, while weaker equity ratios appeared in parts of the South and the Midwest.
At the county level, Midwestern regions stood out with the strongest positions, whereas weaker indicators were concentrated in the South. Overall, the market reflects a transition from rapid growth to a more stable phase, with regional disparities persisting but without widespread financial risk.
