Home Equity Shrinks by $373B, 1.2M Homes Underwater

Homeowners across the U.S. are witnessing a significant decline in home equity, with a collective loss of $373.8 billion compared to last year. The average homeowner lost around $13,400 in equity, but still holds $17.1 trillion in net equity. However, the number of homes underwater on their mortgages has surged by 21% to 1.2 million. This shift is attributed to affordability issues and higher interest rates, with cities like Los Angeles, San Francisco, and Miami experiencing the most substantial losses. Despite recent setbacks, home values remain 52% higher than in 2020, and homeowners still saw an average equity gain of $25,000 in 2023, though this slowed to $4,900 in 2024. The future of these highly leveraged loans hinges on the U.S. economys strength and job market stability.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.