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Home Equity Dips 2.1% Amid Affordability Crisis

12/12/2025

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Summary

Story summary

Home equity declined year-over-year by 2.1% ($373.8 billion) to $17.1 trillion, according to Cotality.
The share of homes in negative equity rose 21% to 1.2 million properties, as affordability challenges push first-time and lower-income buyers to over-leverage.
Chief Economist Dr. Selma Hepp noted that the slowing pace of home price growth signals a shift in equity trends.
Despite the decline, most homeowners still retain substantial equity.

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Story summary

Home equity declined year-over-year by 2.1% ($373.8 billion) to $17.1 trillion, according to Cotality.
The share of homes in negative equity rose 21% to 1.2 million properties, as affordability challenges push first-time and lower-income buyers to over-leverage.
Chief Economist Dr. Selma Hepp noted that the slowing pace of home price growth signals a shift in equity trends.
Despite the decline, most homeowners still retain substantial equity.