Home Equity Growth Bumped Up Again in Q1 2022

Nearly half of all US mortgages were considered to be equity rich in Q1 2022.

Ratio of Equity-Rich to Seriously Underwater Properties at 14:1

ATTOM’s Q1 2022 US Home Equity and Underwater Report indicates that 44.9% of mortgaged residential properties in the US were considered to be equity-rich in Q1 2022.

This 44.9% of equity rich properties in Q1 2022 was up from 41.9% in Q4 2021 and from 31.9% in Q1 2021.

“Homeowners continue to benefit from rising home prices,” said Rick Sharga, executive vice president of market intelligence with ATTOM.  “Record levels of home equity provide financial security for millions of families and minimize the chance of another housing market crash like the one we saw in 2008.  But these higher home prices and rising interest rates make it extremely challenging for first time buyers to enter the market.”

ATTOM’s Q1 2022 US Home Equity and Underwater Report also indicates that just 3.2% of mortgaged homes, one in 31, were thought to be seriously underwater.  This 3.2% was virtually the same as the 3.1% level in Q4 2021 and still well below the level of 4.7%, one in 21 properties, one year earlier.

Highest Levels of Equity-Rich Properties Remained in West during Q1 2022

Eight of the top 10 states with the highest levels of equity-rich properties were located in the West.

Leading states included:

• Idaho – 68.8% of mortgages homes considered equity-rich
• Vermont – 68%
• Utah – 63.6%
• Washington – 60.9%
• Arizona – 60.9%

Leading counties included:

• Dukes County (Martha’s Vineyard) MA – 81.1%
• Teton County (Jackson) WY – 78.7%
• San Mateo county (outside San Francisco) CA – 77.4%
• Chittenden County (Burlington) VT – 77.1%
• Nantucket County MA – 76.6%

Leading metros with populations greater than 500,000 included:

• San Jose CA – 74.4%
• Austin TX – 73.8%
• Boise ID – 70%
• San Francisco CA – 68.1%
• Salt Lake City UT – 65.2%
• Portland ME – 52.1%
• Grand Rapids MI – 49.1%

Leading zip codes with at least 2,000 residential properties with mortgages included:

• 78739 – Austin TX – 84.5%
• 78733 – Austin TX – 84.5%
• 78617 – Del Valle TX – 83.6%
• 94703 – San Francisco CA – 83.6%
• 94116 – San Francisco CA – 83.4%
• 95130 – San Jose CA – 83.3%
• Edgartown MA – 83.1%
• 78759 – Austin TX – 82.7%
• Oak Bluffs MA – 82.6%
• 95148 – San Jose CA – 82.5%

States with Biggest & Least Improvements in Equity-Rich Share of Mortgages

States with the biggest improvements in equity-rich shares of mortgaged homes from Q4 2021 to Q1 2022 included:

• New Mexico – from 35.3% to 43.4%
• Florida – from 46.6% to 53.6%
• California – from 53.7% to 60.5%
• South Carolina – from 35% to 41.2%
• Montana – from 40.5% to 45.7%

States with the least improvements in equity-rich shares of mortgaged homes from Q4 2021 to Q1 2022 included:

• South Dakota – down from 36% to 32.3%
• Mississippi – down from 26.3% to 23.5%
• Louisiana – down from 22.5% to 21.6%
• North Dakota – down from 29.3% to 28.6%
• Pennsylvania – down from 35.49% to 35.46%