43% of Homeowners Are Equity Rich. Here's What That Means for You

If you own a home in Chicago, there's a good chance you're sitting on more equity than you realize.

New data shows 43.3% of mortgaged homes across the country are equity-rich right now.

At the same time, a separate survey from Point found that 48% of homeowners say they aren't planning to move this year, but not for the reasons you may think. 

A lot of them assume they're stuck, mostly because of where mortgage rates are sitting. But being equity-rich changes the calculation in ways most people haven't thought through yet.

So, today, I’m breaking down what the data actually shows, why so many homeowners feel locked in place, and what your equity could actually mean for your options.

What Does "Equity Rich" Actually Mean?

"Equity-rich" is a specific term used in real estate. It means you owe less than 50% of what your home is currently worth.

So if your home is worth $400,000 and your remaining mortgage balance is $180,000, you're equity-rich. You have more than half the home's value sitting on your side of the ledger.

Equity-rich means you don't just have equity in your home. It means you have a lot of it, enough to give you real financial options you may not have considered.

What the Numbers Show

ATTOM’s Q1 2026 U.S. Home Equity & Underwater Report found that 43.3% of mortgaged residential properties nationwide were equity-rich, meaning the total loan balances secured by those homes were no more than half of the property’s estimated market value. That was down from 44.6% in Q4 2025 and marked the lowest national equity-rich rate since Q4 2021.

But here’s the important part: even with that slight decline, homeowner equity remains strong. Nearly half of mortgaged homeowners across the country still owe less than 50% of what their home is worth. ATTOM also reported that only 3.2% of mortgaged homes nationwide were seriously underwater in Q1 2026.

Locally, the Illinois data is encouraging. While many states saw equity-rich rates decline, Illinois was one of only six states where the share of equity-rich homes increased year-over-year, rising from 31.5% in Q1 2025 to 33.5% in Q1 2026.

For Chicago homeowners, the takeaway is simple: even in a more cautious market with higher rates and shifting buyer demand, many owners are still sitting on meaningful equity. That equity can create options — whether you’re thinking about moving up, downsizing, selling an investment property, or simply wanting to understand your current position.

If you’re curious what your home could realistically sell for in today’s Chicago market, I’m happy to put together a no-pressure valuation and walk you through the numbers.

Why So Many Homeowners Feel Stuck

If you locked in a mortgage rate at 3% a few years ago, the idea of selling and buying again probably doesn't sound appealing. 

With 30-year rates currently sitting at 6.42% and no Fed cuts expected until late 2027, trading your current payment for one that's nearly double is a hard sell. No one would blame you for hesitating.

After all, a recent survey from Point found 48% of homeowners (nearly half) say they aren't planning to move this year, with rate lock-in and general uncertainty cited as the main reasons.

What that rate calculation doesn't account for, though, is how much equity you have, and how much that could save you each month on your next mortgage payment. 

How Your Equity Changes the Math

When you're equity-rich, you're not approaching your next purchase the same way you did the first time. 

A larger equity position means a larger down payment, which means a smaller loan, which means your monthly payment on a higher-rate mortgage may not be as painful as you'd expect.

Depending on how much equity you've built, you may have more options than you think:

• Put a significantly larger down payment on your next home, reducing the loan amount and softening the rate impact

• Use a HELOC to access equity without selling

• Sell, then rent temporarily while you wait for rates or prices to shift

• Buy your next home outright, with no mortgage at all

Most homeowners run the math on today's rates without accounting for what their equity actually does to that number. The monthly payment picture looks very different when you're bringing 50% or more to the table.

What This Could Mean for You

The bigger takeaway here is this: A lot of homeowners are making decisions based on the market from 2-3 years ago, not the market we’re actually in today.

Yes, rates are higher.

But home values are also dramatically different, and for many homeowners, the amount of equity they’ve built changes the conversation more than they realize.

You may still decide staying put is the right move. A lot of people are. But it’s worth understanding your position before assuming you don’t have options.

Because the homeowners making the best decisions right now aren’t guessing. They know their numbers.