BiggerPockets Daily Homeowners Continue to Become Equity Rich as the Market Shifts
7 snips
Sep 27, 2025 The U.S. housing market shows a stark divide with nearly half of mortgaged homeowners now equity rich. Report highlights reveal states like Vermont and California thriving in equity, while the Sun Belt sees declining values. On the affordability front, 99% of counties are less affordable than historical norms, with mortgage payments consuming over a third of average wages. The tight supply in the Northeast is driving prices up, creating challenges for buyers while homeowners benefit from high equity. What does this mean for investors?
AI Snips
Chapters
Transcript
Episode notes
Nearly Half Of Mortgaged Homes Are Equity Rich
- 46.2% of mortgaged U.S. homes are equity rich, meaning owners owe less than half the home's value.
- Much of this equity came from 2020–2022 appreciation that left homeowners holding large principal shares.
Northeast Equity Surge From Supply Shortage
- The Northeast shows strong equity gains driven by limited new construction and rising prices.
- Supply constraints there have flipped prior pandemic trends and pushed local appreciation higher.
Sun Belt Equity Shares Are Falling
- Sun Belt states like Florida, Utah, Arizona, Texas, and Colorado saw declines in equity-rich shares this quarter.
- These drops contrast Northeast gains and reflect regional market shifts after the pandemic boom.