Home equity erosion’s cost for average borrower: Cotality

The slow erosion in first-quarter home equity from a year ago equates to a four-figure decline in house value, according to Cotality’s latest numbers.

The new Cotality study, which follows an earlier report of home equity declines by Attom, shows the trend drove a typical house’s value down by $4,200 at the beginning of 2025 compared to the first quarter of last year. 

During the equivalent period in the fourth quarter, the average homeowner experienced a $4,300 gain.

While those numbers don’t tell the whole story given that many other data points indicate home equity levels are historically strong, 12-month comparisons are telling because they adjust for seasonal variations and can point to longer-term trends.

Why home equity is still high but the average value fell

While the share of…