By Jason Bulloch for Offerpad
National housing prices are flat in 2026, and rising mortgage rates have put homeownership out of reach for many. But regional data shows equity-rich markets still exist, and wealth creation remains possible for those positioned to capitalize on it.
Offerpad, a real estate technology company, has compiled an investigation of the latest available data that shows the housing market can still serve as an engine of prosperity.
The Question of Equity
Home equity, meaning the portion of a property’s current market value that is owned outright and calculated by subtracting the outstanding mortgage balance from the home’s total value, is a useful measure of wealth creation. It is also a figure that is measured on a large scale and fluctuates significantly across cities and states.
Data from ATTOM’s Q1 2026 U.S. Home Equity & Underwater Report outlines the state of play, with 43.3% of homes categorized as equity-rich. A home is equity-rich when the mortgage balance is less than 50% of the property’s current market value. The report also looks at properties in negative equity and defines 3.2% of homes as seriously underwater, meaning the mortgages secured against them exceed the property’s market value by 25% or more.
Data broken down at the metro, county, and state levels shows where the most equity-rich properties are located. Vermont topped the list of states in Q1 2026, where 85.7% of homes were equity-rich. That is far above second-place New Hampshire at 58.1%. Montana, Rhode Island, and Hawaii round out the top five, with none falling below the 55% equity-rich mark.
While states like Vermont and New Hampshire lead, the Midwest dominates at the county level, with 23 of the top 30 equity-rich counties located there. Michigan ranked highest overall, with Benzie County posting a 94.5% share of equity-rich properties, and the rest of the top five also falling within Michigan’s borders.
The market is cooling in response to rising interest rates and flat home price growth. Even so, the outlook from an equity perspective is positive, and wealth creation through homeownership remains possible in many places.
The House Price Outlook
As mentioned, house prices have largely remained stagnant so far in 2026 at the national level. However, a look at granular pricing data from Cotality shows there is certainly wealth creation in some areas and enclaves.
San Francisco is an outlier. So far this year, house prices are up 8.9%, rising 7.6% in just 90 days. Analysts put this down to the wave of tech investment in the region, and the wealth creation that comes with it, as a new generation of AI innovators look to either settle on the West Coast or upgrade from their current property. That tech investment has insulated San Francisco property prices from the broader national stagnation.
As with the ATTOM data, Cotality also found the Midwest is seeing gains, with house prices rising 5.9% in Illinois, the largest uptick nationwide at the state level. Maine came in second at 5.6%, reflecting the East Coast’s enduring stability. Midwest metros were also well represented, with Lake County, Indiana, up 5.9%, and Milwaukee following at 4.8%.
Together, these markets show where homeowner wealth is actually accumulating in 2026, despite the national slowdown affecting most buyers.
Experts argue that the inherent affordability of property in the Midwest is part of the reason for the market buoyancy seen so far in 2026. Those who are already on the housing ladder in this region will feel the wealth-creation benefits most.
What’s to Come
Homeownership can provide a route to financial security and, in some cases, real prosperity. Still, the mood in the market as a whole remains tentative, and analysts see today’s stagnant home price growth as a problem that will persist unless mortgage costs change significantly. Concern is also growing over the widening gulf between those already sitting on equity-rich properties and those still aspiring to become homeowners, with no obvious solution in sight beyond the generational transfer of wealth from baby boomers to Millennials and Gen Z.
This story was produced by Offerpad and reviewed and distributed by Stacker.
