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Home Equity Drops $4,200 on Average, But Some Regions Thrive
7 Aug
Summary
- Average U.S. homeowner has $302,000 in home equity, down $4,200 from a year ago
- Northeast sees equity boost, with Rhode Island and New Jersey leading the way
- 27 states experience annual equity loss, with Hawaii, Washington D.C., and Florida hit hardest
According to the latest Homeowner Equity Report from Cotality, the average U.S. homeowner had about $302,000 in accumulated home equity as of August 2025. However, this represents a $4,200 decrease compared to the same period a year ago.
The report notes that during the peak of the pandemic-driven home price gains, annual equity increases had surged to as much as $55,000. But with price appreciation now slowing considerably, home equity is unlikely to accumulate at the same rapid pace. In fact, the average annual gain has fallen to around $11,000, a significant drop from the pandemic-era highs.
The report also highlights significant regional disparities. The Northeast, for instance, is seeing a particular rise in home prices, leading to higher equity for homeowners. Rhode Island has the highest year-over-year equity boost at $36,500, while New Jersey is close behind at $35,700. Homeowners in New York City and Boston are also enjoying substantial equity gains of $20,600 and $25,200, respectively.
In contrast, 27 states have experienced an annual equity loss in the first quarter of 2025. Hawaii is dealing with the highest decline, sinking $65,900, followed by Washington, D.C. at $29,600 and Florida at $26,300. The South, in general, appears to be taking the biggest hit, with affordability concerns and the prevalence of natural disasters contributing to the erosion of home equity in the region.
