Here's The Key, Devastating Stat On Ireland's Brewing Underwater Housing Crisis

Thanks to economist Morgan Kelly’s devastating Irish Times piece, the topic du jour in Europe is underwater mortgages in Ireland.

To get a more detailed grip on this issue, go read Negative Equity in the Irish Housing Market, a paper by economist David Duffy.

A few charts really highlight the problem: First the estimate for the percentage of mortgage-holders with underwater homes:

For what it’s worth, in the US, the equivalent number is in the mid-20s, so the problem is worse in Ireland.

chart

Another worrisome thing for the Irish housing market is this, the peak years for no-down payment loans. By 2007, these numbers were already falling for the US, suggesting the Irish bust is still working through issues the US has dealt with a while go:

chart

There’s lots more interesting stuff in the paper, which you can download here.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.