SEATTLE, Aug. 18, 2016 /PRNewswire/ -- Both urban and
suburban communitiesi have a significant share of
homeowners in negative equity five years into the recovery,
according to the second quarter Zillow® Negative Equity
Reportii.
Nationally, 13.7 percent of homeowners in urban regions and 11.2
percent of homeowners in suburban regions are underwater.
After the housing bubble burst, nearly a third of homeowners in
the United States were underwater
on their mortgages. As the market recovered, many homeowners have
gained back the lost value on their homes, freeing them to sell or
refinance.
In most areas of the country, negative equity is nearly equally
spread across urban and suburban areas. In 13 of the nation's
largest metros, the share of urban and suburban homeowners who are
underwater is within two percentage points.
But some metros are seeing notable gaps in the share of
underwater homeowners between urban and suburban areas.
Cleveland and Detroit have the biggest difference between
negative equity rates in urban and suburban neighborhoods – 13.6
and 10.8 percentage points, respectively. In these metros, home
values in the main urban centers are trailing behind the overall
region's recovery, and are still well off from their peak
levels.
By contrast, negative equity is equally common among urban and
suburban areas in the Seattle
area, where a more balanced recovery and strong economic growth
have led to home values near or exceeding their bubble peak levels
in urban and suburban areas alike.
"At its worst, negative equity touched all kinds of homeowners
in all kinds of markets," said Zillow Chief Economist Dr.
Svenja Gudell. "The type of
community a given home was in – urban or suburban – mattered
little. Fast-forward a few years, and the relative vibrancy of a
given community and how it has performed over the past few years,
and not necessarily its location in the city or suburbs, matters a
great deal."
Overall, the national negative equity level fell to 12.1
percent, down from 12.7 percent in the first quarter and 14.4
percent a year ago. For the first time, all of the largest markets
in the country now have negative equity rates below 20 percent.
Western metros with strong job and housing markets have the
lowest rates of negative equity. Less than 5 percent of mortgaged
homeowners in San Jose,
San Francisco, Portland, Denver, and Dallas are underwater.
Metropolitan
Area
|
2015 Q2
Negative
Equity Rate
|
2016 Q2
Negative
Equity Rate
|
2016 Q2 Urban
Negative
Equity Rate
|
2016 Q2
Suburban Negative
Equity
Rate
|
United
States
|
14.4%
|
12.1%
|
13.7%
|
11.2%
|
New York/Northern New
Jersey
|
12.0%
|
11.0%
|
13.3%
|
10.4%
|
Los Angeles-Long
Beach-Anaheim, CA
|
7.8%
|
6.1%
|
6.8%
|
5.5%
|
Chicago,
IL
|
22.0%
|
19.0%
|
25.7%
|
17.3%
|
Dallas-Fort Worth,
TX
|
6.2%
|
4.8%
|
5.2%
|
4.5%
|
Philadelphia,
PA
|
16.9%
|
14.2%
|
20.6%
|
12.4%
|
Houston,
TX
|
6.4%
|
6.9%
|
N/A
|
N/A
|
Washington,
DC
|
16.4%
|
14.2%
|
15.7%
|
13.6%
|
Miami-Fort
Lauderdale, FL
|
16.3%
|
11.8%
|
14.1%
|
11.2%
|
Atlanta,
GA
|
20.9%
|
14.7%
|
19.3%
|
13.9%
|
Boston, MA
|
7.9%
|
6.6%
|
9.5%
|
6.0%
|
San Francisco,
CA
|
5.4%
|
4.0%
|
4.1%
|
3.7%
|
Detroit,
MI
|
18.3%
|
14.0%
|
22.6%
|
11.8%
|
Riverside,
CA
|
15.8%
|
12.0%
|
13.6%
|
11.3%
|
Phoenix,
AZ
|
18.2%
|
12.6%
|
12.6%
|
12.4%
|
Seattle,
WA
|
11.9%
|
7.4%
|
7.2%
|
7.3%
|
Minneapolis-St Paul,
MN
|
13.2%
|
8.9%
|
10.1%
|
8.5%
|
San Diego,
CA
|
8.6%
|
7.1%
|
8.2%
|
6.4%
|
St. Louis,
MO
|
18.8%
|
14.7%
|
N/A
|
N/A
|
Tampa, FL
|
17.6%
|
12.1%
|
13.1%
|
11.9%
|
Baltimore,
MD
|
17.8%
|
16.7%
|
22.5%
|
14.6%
|
Denver, CO
|
6.0%
|
4.8%
|
5.9%
|
4.3%
|
Pittsburgh,
PA
|
10.2%
|
9.2%
|
10.8%
|
8.3%
|
Portland,
OR
|
7.5%
|
4.2%
|
4.3%
|
4.1%
|
Charlotte,
NC
|
12.1%
|
9.2%
|
10.3%
|
9.2%
|
Sacramento,
CA
|
13.0%
|
8.8%
|
N/A
|
N/A
|
San Antonio,
TX
|
11.0%
|
11.0%
|
N/A
|
N/A
|
Orlando,
FL
|
17.8%
|
13.4%
|
N/A
|
N/A
|
Cincinnati,
OH
|
15.4%
|
12.5%
|
16.7%
|
11.8%
|
Cleveland,
OH
|
18.3%
|
15.5%
|
27.2%
|
13.6%
|
Kansas City,
MO
|
17.9%
|
15.0%
|
N/A
|
N/A
|
Las Vegas,
NV
|
25.0%
|
19.5%
|
23.2%
|
17.2%
|
Columbus,
OH
|
14.2%
|
10.2%
|
17.7%
|
9.4%
|
Indianapolis,
IN
|
15.0%
|
15.2%
|
21.4%
|
14.4%
|
San Jose,
CA
|
3.4%
|
2.4%
|
2.7%
|
2.3%
|
Austin, TX
|
6.9%
|
6.7%
|
7.1%
|
6.3%
|
Zillow
Zillow® is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Zillow also sponsors the
bi-annual Zillow Housing Confidence Index (ZHCI) which measures
consumer confidence in local housing markets, both currently and
over time. Launched in 2006, Zillow is owned and operated by Zillow
Group (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i Zillow based its definition of urban and suburban
regions on a 2014 survey of how people define their own
neighborhoods – as either urban, rural, or suburban – and then used
characteristics of those places to extrapolate the results and
define ZIP codes all over the country.
ii The data in the Zillow Negative Equity Report
incorporates mortgage data from TransUnion, a global leader in
credit and information management, to calculate various statistics.
The report includes, but is not limited to, negative equity,
loan-to-value ratios, and delinquency rates. To calculate negative
equity, the estimated value of a home is matched to all outstanding
mortgage debt and lines of credit associated with the home,
including home equity lines of credit and home equity loans. All
personally identifying information ("PII") is removed from the data
by TransUnion before delivery to Zillow. Overall, this report
covers more than 870 metros, 2,400 counties, and 23,000 ZIP codes
across the nation.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/five-years-into-housing-recovery-negative-equity-still-affects-more-than-1-in-10-homeowners-300315222.html
SOURCE Zillow, Inc.