SAN GABRIEL VALLEY — California Homeowners Remain Equity Rich despite a significant decline in housing equity during the past year. Nearly 46% of mortgaged residential properties statewide still had at least 50% equity during the second quarter.
California’s equity-rich rate stood at 45.6%, according to ATTOM’s second-quarter 2026 U.S. Home Equity and Underwater Report. ATTOM defines equity-rich properties as those where secured loan balances total no more than half the estimated market value.
The state remained above the national equity-rich rate of 41.1%. Nationwide, that figure fell from 47.4% during the second quarter of 2025.
California Homeowners Remain Equity Rich
California recorded one of the nation’s largest annual declines in equity-rich properties. Its share fell from 56.9% a year earlier to 45.6%, an 11.3 percentage-point drop.
That decline does not mean homeowners lost most of their equity. Instead, fewer mortgaged properties met ATTOM’s threshold for being classified as equity rich.
Home equity represents the difference between a property’s value and debt secured by the home. A homeowner with a property worth $800,000 and $350,000 in mortgage debt would have about $450,000 in equity.
For longtime homeowners in El Monte, South El Monte, Baldwin Park, Rosemead and Irwindale, years of appreciation and mortgage payments may have created substantial equity. That wealth can provide greater flexibility when owners sell, borrow or plan for retirement.
ATTOM also found that homeowner equity measures remain healthier nationally than they were before 2020. Still, the company said recent movement in those measures warrants attention.
Equity Provides A Financial Cushion
California Homeowners Remain Equity Rich at a time when housing conditions are becoming less favorable in several markets. Substantial equity can help protect owners from becoming underwater if home values decline.
Separate research from Cotality also points to California homeowners’ strong equity position. The company reported that the average mortgaged California homeowner held about $626,900 in equity during the first quarter.
Equity is not the same as cash available for spending. Homeowners generally must sell or borrow against their properties to access that wealth.
Home equity loans and lines of credit can provide funds for repairs or other expenses. They also create new debt secured by the home and carry borrowing costs.
The latest numbers provide both reassurance and a warning for San Gabriel Valley homeowners. California’s equity-rich share has declined sharply, but millions of owners still have significant value accumulated in their properties.
That cushion could influence decisions about selling, retirement, borrowing or transferring property to the next generation. As California’s housing market changes, homeowner equity remains an important measure of household financial strength.
Readers can review the latest housing-equity data through ATTOM’s equity-rich property report and broader homeowner-equity research from Cotality.
