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December 2023 » thefivestar.com 75 December 2023 J O U R N A L mortgaged homes considered equi- ty-rich decreased from 50% in Q2 2023 to 43.7% in Q3 2023) » Florida (down from 60.4% to 54.4%) » Kentucky (down from 42.1% to 37.1%) » California (down from 63.3% to 58.5%) » Oklahoma (down from 36.5% to 32.5%) Equity-rich levels rose in 21 states from Q2 to Q3 of this year, with the largest improvements concentrated in the North- east region. The biggest increases were in South Dakota (up from 46.4% to 49.9%), Maine (up from 56% to 59.3%), Connecticut (up from 38.6% to 41.5%), New Jersey (up from 43% to 45.9%), and New Hampshire (up from 56.6% to 59.4%). Seriously Underwater Mortgage Levels Improve in Most States The portion of mortgaged homes considered seriously underwater dropped and remained historically low during Q3 2023 in 43 states. The biggest decreases were clustered in the Midwest and the Northeast, a region that has some of the nation's highest levels of seriously underwater mortgages. The improvements were led by: » Indiana (share of mortgaged homes that were seriously underwater, down from 8.1% in Q2 2023 to 2.6% in Q3 2023) » Hawaii (down from 3.6% to 1.6%), South Dakota (down from 4% to 2.6%) » Missouri (down from 4.8% to 3.9%) » Maine (down from 2.7% to 1.9%) States where the percentage of seri- ously underwater homes increased the most from the second to Q3 of this year were led by Wyoming (up from 3% to 5.9%), Mississippi (up from 5.8% to 7.4%), California (up from 1.1% to 1.6%), Idaho (up from 2.4% to 2.7%), and Louisiana (up from 10.5% to 10.8%). Highest Levels of Equity-Rich Home- owners in the Northeast and West The 10 states with the highest levels of equity-rich mortgaged properties around the United States during Q3 2023 were in the Northeast and West regions. Those with the largest portions were: » Vermont (79.8% of mortgaged homes were equity-rich) » New Hampshire (59.4%) » Maine (59.3%) » Montana (59.1%) » California (58.5%) Nine of the 10 states with the lowest percentages of equity-rich properties during Q3 2023 were in the Midwest and South. The smallest portions were in Louisiana (19.7% of mortgaged homes were equity-rich), Illinois (29.8%), Alaska (29.8%), West Virginia (30.5%), and North Dakota (30.7%). Among the 107 metropolitan statisti- cal areas around the nation with a pop- ulation of at least 500,000, the West and South again dominated the list of places with the highest portion of mortgaged properties that were equity-rich. All but three of the top 25 metros were in those regions during Q3 2023, led by: » San Jose, California (75% equity-rich) » San Diego (66.4%) » Los Angeles (66.4%) » San Francisco (64.1%) » Portland, Maine (63.5%) The leader in the South region again was Sarasota-Bradenton, Florida (61.5%), while the top metro in the Midwest continued to be Grand Rapids, Michigan (54.3%). The 10 metro areas with the lowest percentages of equity-rich properties in Q3 of 2023 were in the Midwest and South. The smallest levels were in Baton Rouge, Louisiana (15.1% of mortgage homes were equity-rich); New Orleans (26.4%); Little Rock, Arkansas (26.6%); Virginia Beach, Viginia (28.1%); and Jackson, Mississippi (29.5%). The portion of mortgaged homes considered equity-rich declined from Q2 of 2023 to Q3 of 2023 in 79 of the 107 met- ro areas with sufficient data (74%), while the portion decreased from Q3 of last year to the same period this year by 61%. Top Equity-Rich Counties Clustered in the Midwest, Northeast, and West Among 1,732 counties that had at least 2,500 homes with mortgages in Q3 2023, the top 25 equity-rich locations were in the Midwest, Northeast, and West regions. Counties with the highest share of equity-rich properties were: » Chittenden County (Burlington), Vermont (86.8% equity-rich) » Addison County (Middlebury), Ver- mont (86.4%) » Benzie County (Beulah), Michigan (85%) » Presque Isle County (Rogers City), Michigan (83.4%) » Sawyer County (Hayward), Wisconsin (82.8%) Counties with populations of at least 500,000 and the highest equity-rich rates were Santa Clara County (San Jose), California (76.2% equity-rich); San Mateo County, California (outside San Francis- co) (73% equity-rich); Alameda County (Oakland) California (69.1%); Los Angeles County (67.4%); and San Diego County (66.4%). Counties with the smallest share of equity-rich homes in Q3 2023 were Campbell County (Gillette), Wyoming (6.1% equity-rich); Iberville Parish, Louisiana (outside Baton Rouge) (8.1%); Vernon Parish (Leesville), Louisiana (8.3%); Ascension Parish, Louisiana (out- side Baton Rouge) (9.3%); and Greenup County, Kentucky (11.8%). Counties with populations of at least 500,000 and the smallest equity-rich portions were Baltimore City/County, Maryland (25.4% equity-rich); Cook County (Chicago), Illinois (28.4%); Prince George's County, Maryland (outside Washington, D.C.) (29.7%); Anne Arundel County (Annapolis), Maryland (30.9%); and Lake County, Illinois (outside Chica- go) (31%). The Largest Shares of Seriously Underwater Mortgages Remain in the Midwest and South The Midwest and South regions had nine of the top 10 states with the highest shares of mortgages that were seriously underwater in Q3 of this year. The top five were: » Louisiana (10.8% seriously underwater) » Mississippi (7.4%) » Wyoming (5.9%) » Kentucky (5.7%) » Iowa (5.2%) The smallest shares were in Vermont (0.9% seriously underwater), New Hamp- shire (0.9%), Rhode Island (1%), Massa- chusetts (1%), and Florida (1.3%). While most seriously underwater rates around the country changed by less than one percentage point from Q2 to Q3