Feeling rich? If you own a home, you should.
Many homeowners in California are considered “equity rich,” with more equity than mortgage debt, at least based on the current market value, according to ATTOM Data.
Almost three of every five (57.7%) homeowners in the state are “equity rich,” one of the highest percentages in the U.S. – and 10 percentage points higher than the national average during the third quarter.
Three of the cities with the highest percentage of equity rich properties are in California, including nation-leading San Jose at 69%. Almost two of every three (64%) of homeowners in San Diego and Los Angeles are equity rich.
BAY AREA EQUITY DROPS
But some Bay Area homeowners are feeling the blues. The percentage of equity-rich homeowners in San Jose dropped to 69% from 75% a year ago, while San Francisco fell about 6 percentage points to 58%.
Falling home prices are the primary reason for the tumble.
More affordable communities, especially in the Central Valley and Inland Empire, enjoyed an increase in home equity, thanks to higher home prices amid more demand for those homes.
The back and forth with the percentage of equity rich homeowners will change every quarter, as home prices move, says Rob Barber, CEO of ATTOM.
“Homeowner equity typically mirrors home-price trends, and the third quarter of this year followed that pattern,” Barber says. “Equity remained elevated as the value of residential properties has surged consistently over the years. Despite the flat pattern, home equity keeps providing a significant boost to the economy in the form of financial leverage that tens of millions of households can use to finance major purchases or investments.”
| City | % equity rich Q3 ’24 | % equity rich Q3 ’23 |
|---|---|---|
| Bakersfield | 43.7% | 38.0% |
| Fresno | 48.3% | 45.0% |
| Los Angeles | 63.9% | 66.0% |
| Riverside | 52.3% | 45.0% |
| Sacramento | 47.8% | 45.0% |
| San Diego | 64.1% | 66.0% |
| San Francisco | 58.4% | 64% |
| San Jose | 68.7% | 75.0% |
Source: ATTOM Data
San Mateo is one of the most expensive housing markets in the U.S. Larry Zhou/ADOBE STOCK
A $252 million deal will open the door to more affordable housing in the Bay Area
Ethos Real Estate has bought Hillsdale Garden Apartments, a 697-apartment community in San Mateo.
Ethos Real Estate, in collaboration with The Vistria Group, will convert the market-rate apartment community into an affordable property, a much-needed option for low-income residents in one of the priciest housing markets in California. The conversion will become one of the largest market rate-to-affordable community efforts in the state.
After completing an extensive renovation, Hillsdale Garden Apartments will be available to households earning 80% of the area median income for San Mateo County. Almost half of renters spend at least 30% of their income on housing in the county, according to the Joint Center for Housing Studies of Harvard University.
“Our working-class neighbors deserve a stable home, dignified conditions and responsive management,” says San Mateo County Supervisor Noelia Corzo. “This project is an excellent example of how revitalizing existing homes and preserving their affordability can allow residents to stay in their communities with dignity.”
PARTNERSHIP WILL PROVIDE MORE OPPORTUNITIES FOR LOW-INCOME RESIDENTS
Hillsdale Garden Apartments has 52 two- and three-story buildings. The apartment community offers studios to three-bedroom units. Amenities include a swimming pool and basketball court. The apartment community opened in 1948.
“This investment isn’t just about real estate; it’s about how private investment, local government and nonprofits can partner to create scalable and efficient models for addressing the housing crisis across the country,” says Margaret Anadu, senior partner and head of real estate at The Vistria Group. “Everyone deserves an affordable home, and we take particular pride in creating that opportunity in communities with strong public schools and diverse job opportunities.”
The apartment community – located at 3500 Edison Street, about 25 miles from downtown San Francisco – will offer residents access to numerous services, including adult education and after-school programs through Pacific Housing.
“We are honored to be partnered with Vistria on preserving affordable housing at community scale,” says Jennifer Keith, managing partner and cofounder of Ethos Real Estate. “Our collective efforts will reduce displacement, improve existing housing conditions, and provide a range of social services for the residents of Hillsdale Gardens.”
Ethos Real Estate acquired Hillsdale Garden Apartments for $252.4 million from Essex Property Trust. The deal was facilitated by a Freddie Mac acquisition loan from KeyBank, which has become a major player in affordable housing lending.
CAR chooses new president
The California Association of Realtors (CAR), one of the largest associations nationwide with 200,000 members, has a new leadership team, headed by president Heather Ozur, a Realtor from Palm Springs.
Ozur, a real estate professional with The RECollective, has more than two decades of experience in the fast-changing housing industry. Ozur has been a director with CAR since 2008, serving on numerous committees, including strategic planning and finance, professional standards, transaction, and regulatory, federal, legislative and business technology forum.
She follows Melanie Barker, a Yosemite-area Realtor who served as president in 2024.
OTHERS ON THE LEADERSHIP TEAM
Joining Ozur on the leadership team are Tamara Suminski as president-elect, Mark Peterson as treasurer and Phil Hawkins, CEO of CAR. Hawkins, previously CEO of the Pacific West Association of Realtors, joined CAR in September 2024.
Suminski is the broker and co-owner of BEACH Real Estate Group in Manhattan Beach. She has more than two decades of experience in the real estate industry.
Peterson is a broker and CEO of RE/MAX Masters in La Verne. He has been a state director for CAR since 2001 and has been in the industry for about four decades.
CAR, like real estate associations nationwide, has been undergoing significant changes following a lawsuit against the National Association of Realtors. Some of the moves include more transparency on how buyers’ agents are compensated.
