Though homeowners are gaining equity across the country, the number of underwater borrowers in some areas remains high. The metro with the highest share of homeowners with negative equity is Miami-Miami Beach-Kendall, Fla., where the number of those in the red has grown 13.1 percent year over year, according to a new report from CoreLogic.
Nationwide, the number of homes with a mortgage in negative equity—which can occur due to a decrease in a home’s value or an increase in the homeowners’ mortgage debt—dropped 1 percent between the third and fourth quarters of 2017. About 2.5 million homes, or 4.9 percent of all properties with a mortgage, were still in a negative equity position as of the fourth quarter, according to CoreLogic. Overall, negative equity in the fourth quarter plunged 21 percent year over year.
In the fourth quarter of 2009, negative equity peaked at 26 percent of all residential properties with a mortgage, according to CoreLogic’s records. The following metros had the highest share of negative equity in the fourth quarter of 2017:
- Miami: 13.1%
- Chicago: 10.1%
- Las Vegas: 9.2%
- Washington, D.C.: 6.5%
- New York: 5.4%
- Boston: 3.7%
The following chart from CoreLogic shows the negative equity share on the state level.