Vermont tops US list for highest percentage of equity-rich homeowners

Vermont, though one of the smallest states in the U.S., boasts the highest percentage of equity-rich homeowners. This is according to the 2024 U.S. Home Equity & Underwater Report by ATTOM, a real estate analytics company. The report indicates that 86.7% of Vermont homeowners have significant home equity, meaning their mortgage balance is 50% or less than their home's market value.

In Chittenden County, Vermont, where homes are listed at a median price of $576,600, an impressive 91.7% of homeowners are considered equity-rich.

Other states with high percentages of equity-rich homes include New Hampshire (61.4%), Maine (61.1%), Rhode Island (60.8%), and Montana (60.1%). In contrast, Louisiana has the lowest percentage at 22.4%, followed by Alaska (31.5%), North Dakota (32.4%), Maryland (32.6%), and Illinois (33%).

California cities also show high levels of home equity richness: San Jose leads with 68.5%, Los Angeles follows with 64%, and San Diego reports 63.4%.

Overall, the report found that 47.7% of mortgaged homes in the U.S are considered equity-rich as of Q4 2024—a slight decrease from earlier peaks but still indicative of strong home equity growth in most states over the past year.

ATTOM CEO Rob Barber stated: “Nearly half of all residential mortgage payers in the U.S have paid off at least half of their loans.”

Equity-rich homeowners benefit from leveraging their home value for financial activities like upgrading properties or securing HELOCs despite current interest rates nearing 7%. Many remain hesitant to sell due to "golden handcuffs," holding onto lower interest rates secured before recent hikes.

HELOC balances have risen by 20% since 2021 as more homeowners opt for this financial tool instead of selling amidst rising rates and prices.

Selma Hepp from CoreLogic highlighted an increase in average home equity since COVID-19 began—up $129,000—to serve as a financial buffer against defaults despite inflationary pressures on non-mortgage expenses.

Despite high-interest environments deterring some moves within housing markets unless prompted by major life events such as marriage or divorce—Hannah Jones noted these factors keep market activity ongoing even now.