Texas homes lost equity while states to the north saw gains, according to a new report, with some Dallas-Fort Worth homebuyers seeing a major dip in how much equity they have in their homes.
Texans had an average decrease in home equity of about $19,000 year-over-year, according to the property analytics company Cotality. The report measured homeowner equity — a home’s value minus what is owed on its mortgage — between the fourth quarters of 2024 and 2025.
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The average equity per homeowner is about $184,000 in Texas, lower than in most states, especially those closer to the coasts.
Negative equity jumped by 15% to 1.1 million homes, or 2% of all mortgaged properties year-over-year, according to the report. The total number of mortgaged residential properties with negative equity increased by 3.6% to 1.2 million homes — or 2.2% of all mortgaged properties quarter over quarter.
D-FW Real Estate News
D-FW homes have an average home equity of about $228,000, nearly a 8% decrease year-over-year, according to Cotality data.
Currently, local homeowner equity is down more than $50,000 going back to the second quarter of 2022, when home equity peaked, according to Cotality. In May 2022, the median home in Dallas-Fort Worth-Arlington reached $430,000 after rising nearly $145,000 in just three years, according to the Texas Real Estate Research Center.
The median D-FW home price was at about $375,000 at the end of 2025.
As home price growth has slowed across the U.S., homeowner equity has largely leveled off, but it remains historically high, Cotality chief economist Selma Hepp said in a statement.
“Looking ahead, muted home price appreciation could limit additional equity gains, and any deterioration in the labor market could pressure household balance sheets, particularly for more recent buyers with thinner equity cushions,” Hepp said.
Other states across the southern half of the United States also tended to lose home equity. The average borrower had an equity decrease of about $8,500 over the period reviewed in the report. That leaves the average borrower with about $295,000 in accumulated home equity.
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