Connecticut saw the largest annual increase nationwide in the proportion of equity-rich homes in the second quarter of 2025.

According to Attom’s second quarter 2025 U.S. Home Equity & Underwater Report, the Nutmeg State saw an increase from 45.5 percent to 49.4 percent of homes being equity-rich, meaning the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market value. Additionally, Connecticut was among the states with the largest decrease in seriously underwater homes.

Nationwide, 47.4 percent of mortgaged residential properties were equity-rich, up from 46.2 percent in the first quarter of 2025. This is the first time that there has been an increase in the share of equity-rich homes after the share of equity-rich homes peaked at 49.2 percent in the second quarter of 2024.

“With home prices at record highs you’d expect to see owners enjoying more equity in their homes, so it’s good to see equity-rich rates rebound after a few slower quarters,” Attom CEO Rob Barber said. “Unfortunately, the increase in equity-rich rates we saw in the second quarter hasn’t been spread evenly throughout the country.”

2.7 percent of mortgaged residential properties in the U.S. were seriously underwater in the second quarter of the year, meaning the combined estimated balance of loans secured by the properties were at least 25 percent more than the properties’ estimated market values.

Connecticut also saw its share of seriously underwater homes drop from 1.5 percent to 1.4 percent.