In the third quarter, 16.7 million residential properties in the U.S., or 28.3% overall, were considered “equity rich,” according to a new report from ATTOM Data Solutions, a real estate research data firm. A property is considered equity rich when the property owner has at least 50% equity in the home.
“Homeowner equity in the third quarter added another pebble to the pile of markers showing that the U.S. housing market continues to defy the broad downturn in the economy this year,” says Todd Teta, chief product and technology officer for ATTOM Data Solutions. “Home prices keep rising, boosting the balance sheets of homeowners throughout most of the country. With the foundation under the housing market still shaky as the coronavirus remains a threat, we will continue to monitor closely the various metrics, including equity. But as it’s been through the pandemic, the market is strong and homeowners remain in a position to benefit.”
Four of the 10 states with the largest gains in the share of equity-rich homes from the second to the third quarter were in New England, the report shows. The top five were Vermont, where the level of homes considered equity rich increased to 45.1% in the third quarter (up from 39.1% in the second quarter); Maine (33.5%); South Dakota (30.3%); New Hampshire (26.7%); and Idaho (39.5%).
By county level, the top equity-rich areas remained concentrated in the West and Northeast, ATTOM’s report shows. The highest concentration of equity-rich properties were once again in the San Francisco Bay Area of California.
Source: ATTOM Data Solutions
