ATTOM's report said Q4 2025 marked the lowest share of equity-rich properties since late 2021 while emphasizing that overall equity levels continue to compare favorably with historical benchmarks. In early 2020, only about one-quarter of mortgaged homes were considered equity rich. After years of rapid gains, homeowner equity is settling into a more sustainable range, and that's not a negative sign for the market, said Rob Barber, CEO at ATTOM.
California and Florida top the list of housing markets most at risk of a downturn in home values-with multiple counties facing significant challenges, according to ATTOM, a real estate analytics firm. Factors contributing to risk include affordability, underwater mortgages, foreclosures, and unemployment rates. The report highlights the unaffordability of housing in many counties, with residents needing to allocate a large portion of their income to home expenses.