Rhode Island Homeowners Defy National Cooling Trend, in U.S. for Home Equity Growth
WARWICK, RI – While much of the nation is watching home equity levels pull back from historic peaks, Rhode Island homeowners are sitting on some of the most valuable "nest eggs" in the country.
According to the latest analysis from the Real Estate Institute of Rhode Island (REIRI), based on year-end data from ATTOM, the Ocean State has secured a dominant position in national rankings. Rhode Island now ranks as the third highest state in the nation for its share of "equity-rich" properties, with 60.8% of mortgaged homes meeting this gold-standard status.
A property is considered "equity-rich" when the owner owes 50% or less of the home’s estimated market value.
A New England Stronghold
Rhode Island isn't just participating in the market—it's leading it. While the national average for equity-rich homes dipped slightly to 47.7%, Rhode Island saw a significant year-over-year surge, jumping from 54.6% to over 60%. This puts the Ocean State in an elite group, trailing only Vermont and New Hampshire.
"What we are seeing is a testament to the incredible resilience of the Rhode Island market," said a spokesperson for the Real Estate Institute of Rhode Island. "While other parts of the country are feeling a 'holding pattern' or even a slight decline, our local homeowners are gaining wealth at one of the fastest rates in the United States. This isn't just a stat—it’s real financial security for thousands of Rhode Island families."
By the Numbers: Rhode Island’s National Standout
The data highlights a "tale of two markets" where the Northeast continues to outperform the rest of the country:
- National Equity-Rich Rank: #3 (Rhode Island at 60.8%)
- Year-Over-Year Growth: One of the largest annual increases in the country.
- Market Stability: Rhode Island also boasts one of the lowest rates of "seriously underwater" mortgages in the nation at just 0.9%, significantly beating the national average.
What This Means for the Ocean State
For current homeowners, this "equity cushion" provides a massive safety net against economic shifts. It also empowers owners to leverage their home's value for renovations, debt consolidation, or moving up to a new property.
However, for the Real Estate Institute of Rhode Island, this ranking also underscores the ongoing inventory challenge. With so many homeowners holding onto high-equity assets and low-interest mortgages, the "lock-in" effect remains a primary driver of the state's limited housing supply.
"The wealth being built here is staggering," the Institute added. "If you bought a home in Rhode Island three to five years ago, you aren't just a homeowner—you are likely sitting on a significant financial asset that has outperformed almost every other state in the Union."
About the Real Estate Institute of Rhode Island
The Real Estate Institute of Rhode Island is a leading authority on state and local property trends, providing professional real estate licensing education, market research, and advocacy for the Rhode Island real estate industry.
.png)