The 20 Cities With The Most Underwater Homes

Las Vegas ShowCould four in five mortgageholders fold?

The scariest number for anyone invested in the real estate market is this: 23.2%.That’s the record-high share of mortgages that are now underwater, as estimated by Zillow.

Negative equity is the prime factor driving a record number of mortgage holders into delinquency. Delinquencies will lead to foreclosures, which will drive down home prices, creating more negative equity — a very dangerous cycle.

In some parts of America, a gob smacking percentage of homes are underwater. In Las Vegas, for instance, four out of five mortgages are now underwater.

Vero Beach, Fla. -- 43.4% of mortgages underwater

mum change: -1.1%

YOY change: -9.8%

Source: Zillow

Melbourne, Fla. -- 43.7% of mortgages underwater

mum change: -1.7%

YOY change: -15.1%

Source: Zillow

Sarasota, Fla. -- 46.3% of mortgages underwater

mum change: -1.2%

YOY change: -6.9%

Source: Zillow

Tucson, Ariz. -- 46.3% of mortgages underwater

mum change: -1.4%

YOY change: -8.7%

Source: Zillow

Tampa, Fla. -- 46.8% of mortgages underwater

mum change: -1.7%

YOY change: -9.1%

Source: Zillow

Riverside, Calif. -- 48.1% of mortgages underwater

mum change: 0.0%

YOY change: 0.9%

Source: Zillow

Jacksonville, Fla. -- 48.2% of mortgages underwater

mum change: -0.5%

YOY change: -10.6%

Source: Zillow

Bakersfield, Calif. -- 48.2% of mortgages underwater

mum change: -1.2%

YOY change: -3.8%

Source: Zillow

Merced, Calif. -- 49.7% of mortgages underwater

mum change: 0.7%

YOY change: 6.1%

Source: Zillow

Vallejo, Calif. -- 51.3% of mortgages underwater

mum change: 0.1%

YOY change: -0.4%

Source: Zillow

Fort Myers, Fla. -- 51.6% of mortgages underwater

mum change: -0.8%

YOY change: -4.7%

Source: Zillow

Port St. Lucie, Fla. -- 52% of mortgages underwater

mum change: -0.7%

YOY change: -10.1%

Source: Zillow

Lakeland, Fla. -- 53.7% of mortgages underwater

mum change: -1.1%

YOY change: -14.7%

Source: Zillow

Modesto, Calif -- 53.9% of mortgages underwater

mum change: 0.1%

YOY change: 2.1%

Source: Zillow

El Centro, Calif -- 55% of mortgages underwater

mum change: -0.2%

YOY change: -6.9%

Source: Zillow

Stockton, Calif. -- 57.5% of mortgages underwater

mum change: 0.0%

YOY change: 2.2%

Source: Zillow

Orlando -- 64.2% of mortgages underwater

mum change: -0.7%

YOY change: -11.9%

Source: Zillow

Reno -- 64.4% of mortgages underwater

mum change: -1.1%

YOY change: -9.9%

Source: Zillow

Phoenix -- 68.4% of mortgages underwater

mum change: -1.4%

YOY change: -12.8%

Source: Zillow

Las Vegas -- 80.2% of mortgages underwater

mum change: 0.1%

YOY change: -4.2%

Source: Zillow

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.