U.S. Home Equity Hits Record $18 Trillion Amid Distribution Gap

ICE Mortgage Technology reported that U.S. mortgage holders held a record $18 trillion in home equity during the second quarter of 2026. Of that total, $11.7 trillion is classified as tappable equity. However, the distribution of this wealth varies significantly by state, with Vermont leading the nation at 78.9% equity-rich properties and Louisiana trailing at 17.5%.

Despite the record total, other data indicates a decline in the proportion of homeowners with substantial equity. ATTOM found that the national share of equity-rich properties—defined as those where loans are half or less of the home's market value—dropped to 41.1% from 47.4% the previous year. The number of borrowers owing more than their homes are worth increased 44% year-over-year to approximately 813,000.

To access cash without forfeiting low-rate first mortgages, homeowners are increasingly turning to second liens and Home Equity Lines of Credit. Second-lien withdrawals reached their strongest first-quarter volume in 18 years. TransUnion reported a corresponding 5.8% year-over-year increase in home-equity originations.