12 Cities Where Homeowners Are Deep Underwater

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Photo: vxla via Flickr

Analysts have been out saying housing has turned the corner. Adding to signs of a recovery is a report from Zillow that shows that the number of homeowners in negative equity – in which a borrower owes more on their mortgages than their home worth – is declining. Being in negative equity is also known as being underwater.

30.9 per cent of homeowners with with mortgages or 15.3 million households were underwater in the second quarter. This compares with 31.4 per cent or 15.7 million homeowners in the previous quarter.

However, housing is a local story and large parts of the country are still struggling with negative equity.

We drew on Zillow’s report to highlight 12 metros that still have very high negative equity and included the delinquency rate and loan-to-value ratio. We rank them by negative equity share, or the per cent of homes that are underwater.

Note: Delinquency rate is the per cent of homes that are over 90 days late on their mortgage payments.

Seattle, Washington

Negative equity share:
37.8 per cent

Total amount of negative equity:
$23.0 billion

Delinquency rate:
10.3 per cent

37.6 per cent of underwater homeowners owe 20 per cent or less, while 9.1 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Minneapolis-St. Paul, Minnesota

Negative equity share:
38.7 per cent

Total amount of negative equity:
$17.5 billion

Delinquency rate:
4.7 per cent

39.1 per cent of underwater homeowners owe 20 per cent or less, while 8.5 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Chicago, Illinois

Negative equity share:
39.2 per cent

Total amount of negative equity:
$56.8 billion

Delinquency rate:
12.0 per cent

32.2 per cent of underwater homeowners owe 20 per cent or less, while 15.3 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Miami-Fort Lauderdale, Florida

Negative equity share:
43.7 per cent

Total amount of negative equity:
$42.7 billion

Delinquency rate:
24.9 per cent

22.5 per cent of underwater homeowners owe 20 per cent or less, while 30.1 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Tampa, Florida

Negative equity share:
46.6 per cent

Total amount of negative equity:
$16.2 billion

Delinquency rate:
17.6 per cent

25.0 per cent of underwater homeowners owe 20 per cent or less, while 21.6 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Detroit, Michigan

Negative equity share:
48.3 per cent

Total amount of negative equity:
$24.3 billion

Delinquency rate:
5.4 per cent

23.1 per cent of underwater homeowners owe 20 per cent or less, while 28.0 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Sacramento, California

Negative equity share:
49.3 per cent

Total amount of negative equity:
$19.6 billion

Delinquency rate:
8.2 per cent

29.1 per cent of underwater homeowners owe 20 per cent or less, while 18.9 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow


Riverside, California

Negative equity share:
51.2 per cent

Total amount of negative equity:
$39.2 billion

Delinquency rate:
11.1 per cent

28.9 per cent of underwater homeowners owe 20 per cent or less, while 22.3 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Phoenix, Arizona

Negative equity share:
51.6 per cent

Total amount of negative equity:
$35.6 billion

Delinquency rate:
8.0 per cent

24.7 per cent of underwater homeowners owe 20 per cent or less, while 24.2 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Orlando, Florida

Negative equity share:
51.9 per cent

Total amount of negative equity:
$15.8 billion

Delinquency rate:
18.2 per cent

23.5 per cent of underwater homeowners owe 20 per cent or less, while 25.4 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Atlanta, Georgia

Negative equity share:
54.4 per cent

Total amount of negative equity:
$38.2 billion

Delinquency rate:
7.8 per cent

26.0 per cent of underwater homeowners owe 20 per cent or less, while 22.2 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

Las Vegas, Nevada

Negative equity share:
68.5 per cent

Total amount of negative equity:
$23.7 billion

Delinquency rate:
13.6 per cent

20.4 per cent of underwater homeowners owe 20 per cent or less, while 36.0 per cent of underwater homeowners owe more than double what their home is worth.

Source: Zillow

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