BiggerPockets Daily Homeowners Continue to Become Equity Rich as Buyers Struggle
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Aug 23, 2025 The podcast dives into the U.S. housing market, highlighting that nearly half of mortgaged homeowners are now equity rich. However, a stark contrast emerges with home affordability hitting a 14-quarter low, making it challenging for buyers. Regional disparities reveal some states thriving in equity while others face steep affordability declines. The discussion also sheds light on investment opportunities amidst these market shifts, offering insights for homeowners, investors, and renters alike.
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Nearly Half Of Mortgaged Owners Are Equity Rich
- 46.2% of mortgaged U.S. homeowners are equity rich, meaning they owe less than half their home's value.
- This high level of equity comes largely from pandemic-era appreciation between 2020–2022.
Longer-Term Equity Growth Persists
- Year-over-year most states still saw equity growth despite recent quarter dips.
- This indicates longer-term appreciation persists even amid short-term market slowing.
Northeast Leads In Equity Gains
- Northeastern states show the biggest equity gains driven by limited new construction and tight inventory.
- States like Vermont, New Hampshire, and Rhode Island now have very high shares of equity-rich mortgages.