ATTOM Data Solutions today released its Q3 2018 U.S. Home Equity & Underwater Report, which shows that in the third quarter of 2018, nearly 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50% or less of the property's estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013.

The 14.5 million equity rich properties in Q3 2018 represented 25.7% of all properties with a mortgage, up from 24.9% in the previous quarter but down from 26.4% in Q3 2017.

The report also shows more than 4.9 million U.S. properties were seriously underwater — where the combined estimated balance of loans secured by the property was at least 25% higher than the property's estimated market value, representing 8.8% of all U.S. properties with a mortgage. That 8.8% share of seriously underwater homes was down from 9.3% in the previous quarter but still up from 8.7% in Q3 2017.

"As homeowners stay put longer, they continue to build more equity in their homes despite the recent slowing in rates of home price appreciation," said Daren Blomquist, senior vice president with ATTOM Data Solutions. "West coast markets along with New York have the highest share of equity rich homeowners while markets in the Mississippi Valley and Rust Belt continue to have stubbornly high rates of seriously underwater homeowners when it comes to home equity."

Highest seriously underwater share in Louisiana, Mississippi, Iowa, Arkansas, Illinois
States with the highest share of seriously underwater properties were Louisiana (21.3%); Mississippi (16.2%); Iowa (15.5%); Arkansas (15.3%); and Illinois (15.1%).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of seriously underwater properties were Baton Rouge, Louisiana (20.7%); Youngstown, Ohio (18.7%); New Orleans, Louisiana (18.6%); Scranton, Pennsylvania (18.3%); and Toledo, Ohio (17.7%).

26 zip codes where more than half of all properties are seriously underwater
Among 7,290 U.S. zip codes with at least 2,500 properties with mortgages, there were 26 zip codes where more than half of all properties with a mortgage were seriously underwater, including zip codes in the Detroit, Milwaukee, Saint Louis, Atlantic City and Cleveland metropolitan statistical areas.

The top five zip codes with the highest share of seriously underwater properties were 08611 in Trenton, New Jersey (71.0% seriously underwater); 63137 in Saint Louis, Missouri (66.5%); 60426 in Harvey, Illinois (64.2%); 38106 in Memphis, Tennessee (60.7%); and 44105 in Cleveland, Ohio (59.2%).

Highest equity rich share in California, Hawaii, Washington, New York, Oregon
States with the highest share of equity rich properties were California (42.5%); Hawaii (39.4%); Washington(35.3%); New York (34.9%); and Oregon (33.6%).

Among 98 metropolitan statistical areas analyzed in the report, those with the highest share of equity rich properties were San Jose, California (73.9%); San Francisco, California (59.8%); Los Angeles, California (47.6%); Seattle, Washington (41.2%); and Honolulu, Hawaii (40.8%).

417 zip codes where more than half of all properties are equity rich
Among 7,290 U.S. zip codes with at least 2,500 properties with mortgages, there were 417 zip codes where more than half of all properties with a mortgage were equity rich.

The top five zip codes with the highest share of equity rich properties were all in the California Bay area: 94087 in Sunnyvale (87.1% equity rich); 94085 in Sunnyvale (86.7% equity rich); 94086 in Sunnyvale (86.7% equity rich); 94063 in Redwood City (85.9% equity rich); and 95130 in San Jose (85.7% equity rich).