Almost Half of All Homeowners Considered Equity Rich

As home prices continue to soar, the number of homeowners that are now considered “equity rich” has reached nearly 45%, a 13% increase year-over-year. For a homeowner to be considered equity rich they must have at least 50% equity in their home, which has become a much easier feat with rising home prices across the country. Idaho, Vermont, Utah and Washington had the highest rate of equity rich owners in Q1 of 2022. In the opposite case, only 3.2% of mortgaged homes were considered seriously underwater in the first quarter of 2022. Any homeowner owing 25% more than the current market value of their home is considered seriously underwater. Mississippi, Louisiana, and Wyoming had the highest level of mortgages considered seriously underwater. As home prices continue to rise as the back half of 2022 comes into sight, it’s expected that more and more homeowners will be considered equity rich going into 2023. By the same token it’s expected less homeowners will be considered seriously underwater on their mortgage.