Slideshows

US Cities With the Most Underwater Mortgages

U.S. 'Underwater' Mortgage Capitals

44075061 SS_cities_underwater_0510_cover.jpg
For individual homeowners, being “underwater” on a mortgage – when a home is worth less than outstanding debt, also known as “negative equity” – is one of the worst positions to be in, short of foreclosure. However, if you're currently underwater on a mortgage, you're not alone. a firm that compiles US real estate and mortgage information, has put together a list of the 154 largest metro areas that includes statistics on median home values, market changes and the proportion of homes with negativ
Source: Zillow.com

For individual homeowners, being “underwater” on a mortgage—when a home is worth less than outstanding debt, also known as “negative equity”—is one of the worst positions to be in, short of foreclosure. However, if you're currently underwater on a mortgage, you're not alone.

Zillow.com, a firm that compiles U.S. real estate and mortgage information, has put together a list of the 154 largest metro areas that includes statistics on median home values, market changes, and the proportion of homes with negative equity.

Included in the data is the “Zillow Home Value Index,” which represents the median measure of home valuations. According to Zillow, the current median U.S. home price is $171,600, down 6.2 percent year-over-year. More than one in four (26.8 percent) of U.S. homes are underwater, which is down from 28.4 percent last quarter, according to Zillow. Although home values declined year-over-year in 142 out of 154 markets, Zillow’s Chief Economist Stan Humphries predicts that the true bottom for home prices in the U.S. will come in 2012, at the earliest, based upon factors such as foreclosures, negative equity, and fluctuations in demand.

So, which metro areas have the highest proportion of homes underwater? Click ahead for the results.

By Paul Toscano
Posted 9 Aug 2011

15. Melbourne, Fla.

44075080 SS_cities_underwater_0811_melbourne.jpg
% of Homes with negative equity: 51.5% Homes with negative equity: 60,180 Zillow Home Value Index: $102,400 Year-over-year change: -8.9%
Photo: Taneli Mielikainen

Percentage of homes with negative equity: 51.5 percent 
Homes with negative equity: 60,180

Zillow Home Value Index: $102,400
Year-over-year change: -8.9 percent

14. Tucson, Ariz.

44075081 SS_cities_underwater_0811_tuscon.jpg
% of Homes with negative equity: 52.1% Homes with negative equity: 91,111 Zillow Home Value Index: $139,000 Year-over-year change: -12.5%
Photo: Edward McCain | America 24-7 | Getty Images

Percentage of homes with negative equity: 52.1 percent 
Homes with negative equity: 91,111

Zillow Home Value Index: $139,000
Year-over-year change: -12.5 percent

13. Bakersfield, Calif.

44075079 SS_cities_underwater_0811_bakersfield.jpg
% of Homes with negative equity: 53.4% Homes with negative equity: 68,332 Zillow Home Value Index: $119,200 Year-over-year change: -10.6%
Photo: Getty Images

Percentage of homes with negative equity: 53.4 percent 
Homes with negative equity: 68,332

Zillow Home Value Index: $119,200
Year-over-year change: -10.6 percent

12. Atlanta

44075078 SS_cities_underwater_0811_atlanta.jpg
% of Homes with negative equity: 53.8% Homes with negative equity: 573,337 Zillow Home Value Index: $124,200 Year-over-year change: -11.5%
Photo: Chris Rank | Bloomberg | Getty Images

Percentage of homes with negative equity: 53.8 percent 
Homes with negative equity: 573,337

Zillow Home Value Index: $124,200
Year-over-year change: -11.5 percent

11. Fort Myers, Fla.

44075063 SS_cities_underwater_0510_ftmy.jpg
% of Homes with negative equity: 54% Homes with negative equity: 71,733 Zillow Home Value Index: $126,100 Year-over-year change: +3.8%
Photo: Panoramic Images | Getty Images

Percentage of homes with negative equity: 54 percent  
Homes with negative equity: 71,733

Zillow Home Value Index: $126,100
Year-over-year change: +3.8 percent 

10. Merced, Calif.

44075066 SS_cities_underwater_0510_merced.jpg
% of Homes with negative equity: 54.2% Homes with negative equity: 22,191 Zillow Home Value Index: $107,600 Year-over-year change: -2.8%
Photo: Ron Johnson

Percentage of homes with negative equity: 54.2 percent 
Homes with negative equity: 22,191

Zillow Home Value Index: $107,600
Year-over-year change: -2.8 percent

9. Stockton, Calif.

44075074 SS_cities_underwater_0510_stok.jpg
% of Homes with negative equity: 54.4% Homes with negative equity: 60,995 Zillow Home Value Index: $149,200 Year-over-year change: -7.4%
Photo: Inman News

Percentage of homes with negative equity: 54.4 percent 
Homes with negative equity: 60,995

Zillow Home Value Index: $149,200
Year-over-year change: -7.4 percent

8. Vallejo, Calif.

44075076 SS_cities_underwater_0510_valle.jpg
% of Homes with negative equity: 55.4% Homes with negative equity: 41,989Zillow Home Value Index: $192,200 Year-over-year change: -10.6%
Photo: Getty Images

Percentage of homes with negative equity: 55.4 percent  
Homes with negative equity: 41,989

Zillow Home Value Index: $192,200
Year-over-year change: -10.6 percent

7. Tampa, Fla.

44075075 SS_cities_underwater_0510_tamp.jpg
% of Homes with negative equity: 56.4% Homes with negative equity: 299,251 Zillow Home Value Index: $108,600 Year-over-year change: -8.7%

Percentageof homes with negative equity: 56.4 percent  
Homes with negative equity: 299,251

Zillow Home Value Index: $108,600
Year-over-year change: -8.7 percent

6. Port St. Lucie, Fla.

44075070 SS_cities_underwater_0510_port.jpg
% of Homes with negative equity: 56.5% Homes with negative equity: 54,274 Zillow Home Value Index: $112,600 Year-over-year change: -1.2%
Photo: Joe Shlabotnik

Percentage of homes with negative equity: 56.5 percent  
Homes with negative equity: 54,274

Zillow Home Value Index: $112,600
Year-over-year change: -1.2 percent

5. Jacksonville, Fla.

44075064 SS_cities_underwater_0510_jack.jpg
% of Homes with negative equity: 56.6% Homes with negative equity: 148,121 Zillow Home Value Index: $126,800 Year-over-year change: -7.1%
Photo: Jon Zander

Percentage of homes with negative equity: 56.6 percent  
Homes with negative equity: 148,121

Zillow Home Value Index: $126,800
Year-over-year change: -7.1 percent

4. Modesto, Calif.

44075067 SS_cities_underwater_0510_modes.jpg
% of Homes with negative equity: 60.2% Homes with negative equity: 53,999 Zillow Home Value Index: $129,700 Year-over-year change: -10.8%
Photo: Tom Hilton

Percentage of homes with negative equity: 60.2 percent  
Homes with negative equity: 53,999

Zillow Home Value Index: $129,700
Year-over-year change: -10.8 percent

3. Phoenix

44075069 SS_cities_underwater_0510_phx.jpg
% of Homes with negative equity: 67.6% Homes with negative equity: 504,481 Zillow Home Value Index: $122,800 Year-over-year change: -10.4%
Photo: VisionsofAmerica | Joe Sohm | Getty Images

Percentage of homes with negative equity: 67.6 percent  
Homes with negative equity: 504,481

Zillow Home Value Index: $122,800
Year-over-year change: -10.4 percent

2. Reno, Nev.

44075071 SS_cities_underwater_0510_reno.jpg
% of Homes with negative equity: 70% Homes with negative equity: 48,999 Zillow Home Value Index: $154,600 Year-over-year change: -15.1%
Photo: Hiroyuki Matsumoto | Getty Images

Percentage of homes with negative equity: 70 percent  
Homes with negative equity: 48,999

Zillow Home Value Index: $154,600
Year-over-year change: -15.1 percent

1. Las Vegas

44075077 SS_cities_underwater_0510_vegas.jpg
% of Homes with negative equity: 82.7% Homes with negative equity: 261,776 Zillow Home Value Index: $118,600 Year-over-year change: -8.4%
Photo: Gerald Lord | Getty Images

Percentage of homes with negative equity: 82.7 percent  
Homes with negative equity: 261,776

Zillow Home Value Index: $118,600
Year-over-year change: -8.4 percent

Related Tags