While many homeowners are celebrating the recent home wealth boom, not everyone is taking part in a home equity party.
Collectively, American homeowners have accumulated nearly $35 billion in residential equity, almost record value. As of the end of 2024, up to about $303,000 in stock will be added to average mortgage-holding homeowners, according to Property Fintech Platform Cotality. A slight decline from $311,000, with the historic peak reaching the third quarter of 2024.
“There has been a bit of a deadlock and a decline in some areas, but overall, we are still considering some of the highest level of fairness we’ve had historically,” says Selma Hep, Chief Economist at Cotality.
Which states and cities have the wealthiest homeowners? What is their prosperity? And which homeowners are not benefiting from the equity boom? Let’s jump at the details of how homeowners’ wealth is shaped across the country.
Which states have achieved the greatest fairness?
According to Cotality, the majority of mortgage homeowners (61%) increased in stock approximately $4,100 between the fourth quarter of 2023 and the fourth quarter of 2024. However, this is less than the previous profit of $6,000 for the third quarter. Home prices are still risingBut at a more calm pace.
“For the last year, the northeastern and some of New England were areas with the strongest home price increases,” Hep says. “The result is that New Jersey, Connecticut and Massachusetts will have the largest (stake) gains, or about $35,000-$40,000.”
The top five states of equity compared to the previous year are:
- New Jersey ($39,400)
- Connecticut ($36,300)
- Massachusetts ($34,400)
- Rhode Island ($33,000)
- Main ($30,000)
Other regions expanding their stock include the Midwest and Midwest along with California and Nevada.
Which states have the most abundant homeowners?
If you have a wealth of stock, your mortgage balance is less than half the estimated market value of your home. In other words, you own more than you owe. According to Attom Data Solutions, 47.7% of US homes fall into that category in the fourth quarter of 2024.
Where is the specific location to find this valuable property? Going East, Young Homeowners: Where is the Northeastern part of the US, with one exception? Home Equity The level is the best.
The top five home equity rich states are:
- Vermont (86.7%)
- New Hampshire (61.4%)
- Main (61.1%)
- Rhode Island (60.8%)
- Montana (60.1%)
Nationwide, the proportion of houses with a wealth of stocks has fallen slightly. Back in the second quarter of 2024, it peaked nearly half (49.2%). Still, Attom CEO Ron Barber confirms that stock growth remains strong. “It’s important to keep a wider picture in mind,” he says. “Both the total number and percentage of stock-rich homes have been steadily increasing over the years. A small Q4 dip comes right after two particularly strong quarters, and does not necessarily represent a long-term reversal.”
Where do homeowners have trouble?
However, not all homeowners enjoy the benefits of a larger equity interest. In some states, such as Iowa and New Mexico, appreciation was virtually flat. And in others, the value of the house is actually depreciated.
According to Cotality, the states with the biggest decline in home equity year-over-year declines are:
| state | Equity loss |
|---|---|
| Hawaii | – $28,700 |
| Florida | – $18,000 |
| Washington DC | – $15,000 |
| Texas | – $10,000 |
| Louisiana | – $7,000 |
They believe that Hawaii’s losses are attributed to the Maui fire. Hep says he devastated the property and its value. “In the event of a natural disaster, especially if the shares are not protected by property insurance, it happens to the stock.” Florida homeowners have been affected by weakening prices in some areas, such as Cape Coral, Sarasota and Tampa, but Hep said:
Regarding Washington, D.C., HEPP points out that the decline has nothing to do with recent government layoffs. “The area has been slower in terms of rising home prices, and in fact, it has dropped slightly following a surge in mortgage rates. “This is just the DC area, not the Washington metropolitan area in Maryland and Virginia.
Negative fairness rise
However, the increase is not everywhere. Some homeowners are swimming in home equity, while others Underwater.
According to Cotality data, the total number of residential properties with negative stakes in 2% of all mortgage properties in the fourth quarter of 2024 will be 1.1 million homes, the highest level since the first half of 2023.
According to Cotalillitty, the states with the largest percentage of negative fairness are:
| state | Property % |
|---|---|
| Louisiana | 6.17% |
| Iowa | 5.24% |
| Oklahora | 4.53% |
| Mississippi | 4.27% |
| Kentucky | 3.56% |
| North Dakota | 3.53% |
And according to Attom, the most serious underwater states (if the amount paid on a mortgage exceeds the current market value of at least 25%) are:
| state | Property % |
|---|---|
| Louisiana | 9.5% |
| Mississippi | 6.4% |
| Kentucky | 6.1% |
| Arkansa | 5.3% |
| Iowa | 5.3% |
“If you look at what these markets are, they are generally low income markets, lower down payments, historically lower home prices,” Hepp says. “We also tend to see more natural disasters in these areas.”
Underwater homes of 1.1 million people sound like many, but take into consideration some historical context. During the Great Recession, 12 million homes were underwater, peaking at 26% of mortgaged housing estates. “Right now, we only have around 2% of homeowners nationwide in negative equity,” Hepp says.
Even if the economy slows significantly, the impact of the housing market recession could be significantly different from 15 years ago, thanks to large stock interests. “This time, existing homeowners are in a much better position in their financial buffer than they have come out of the financial crisis,” adds Hep.
Where homeownership is the most painful
Homeowners enjoy high stock levels, but they also face higher housing-related costs. The hidden costs of bankrate homeownership The survey found that the average annual cost of owning and maintaining a detached home has increased by 26% to $18,118 per year over the past four years. Everything has become more expensive from Fixed Asset Tax Insurance with homeowners on goods and services, driven (in some cases) by inflation in general and rising values in particular.
Naturally, places that bring great benefits often feel the most painful. “Homeowners (WHOs) benefit from the highest fairness (Are) in the country’s most expensive market and have the highest cost of ownership,” Barber says. Some of the top states for stock profits pay more than $25,000 a year in ownership and maintenance costs. They have also experienced the biggest increase, a study on Banrate found.
“Existing homeowners benefit from rising home prices, which has resulted in accumulation of fairness, which is at the disadvantage of new entrants into the housing market,” Hepp says. “As a result of these rising home prices, affordability for (homes) is at some of the lowest levels we’ve had historically.”
Why is home equity important?
Home equity represents wealth: Ownership of key financial assets.
“The expansion from the long housing market boom has brought great benefits to homeowners at all income levels,” Barber says. “As stocks increase, the value of what is often the number one property in a household will also increase, strengthening the overall net worth, increasing the potential profits at the time of sale, with no notable drawbacks and increasing the potential profits.”
For fair homeowners, they can tap on it Heloc or Home Equity Loan To improve your property, pay to consolidate your child’s college or debt at the lowest interest rate on consumer debt. Alternatively, homeowners can stick to their own fairness by leaving it in their home and handing it over Future generations.
It is a potential slowdown in the US economy that can throw a monkey wrench into the growth of home capital. “Historically, the recession has weakened the housing market due to lower investment in household ownership due to increased unemployment and reduced consumer trust,” Barber says. “As demand softens, the value of the home will decrease and push more properties into underwater territory. Homeowners are borrowing more than their home value. At the same time, they may shrink as shares of stock-rich properties accumulate.
But even if growth in the economy and home values is ruled out, Build a decent equity stake It can give homeowners a strong economic advantage. It can not only help to cover major costs, but it can also be a valuable safety net for tough times.
