US home equity hits record $18 trillion amid rising mortgage distress

U.S. mortgage holders reached a record $18 trillion in total home equity during the second quarter of 2026. According to ICE Mortgage Technology, $11.7 trillion of this is classified as tappable equity held by 47.5 million borrowers.

However, data from ATTOM indicates a growing segment of homeowners is facing financial distress. The share of homeowners who are seriously underwater—owing at least 25% more than their home's estimated value—rose to 3.2%, up from 2.7% the previous year. Minnesota saw the most significant increase, with its rate of seriously underwater mortgages jumping to 12.1% from 2.6% a year earlier.

Regional disparities in equity are stark. Vermont leads the nation in equity-rich properties, where nearly 78.9% of mortgaged homes have loan balances no more than half of their market value. Conversely, Louisiana has one of the lowest shares of equity-rich properties at 17.5%, though its rate of seriously underwater homes has recently improved.