10 Cities With The Most 'Underwater' Mortgages
Florida and Texas are hotspots for homeowners with "underwater" mortgages, where the home's value is less than the mortgage balance.
Most homeowners have a comfortable mortgage equity cushion, boosting their net worth and allowing access to low-cost borrowing. However, recent buyers in certain areas face the opposite experience, with their homes worth less than their mortgage balances, also known as negative equity.
Home equity has climbed nearly 80% since early 2020 — up from $19.5 trillion — thanks to a turbocharged rise in house prices.
This translates to American homeowners sharing $35 trillion in housing wealth, although this amount is not spread evenly across the country.
Author's summary: Homeowners in certain US cities face negative equity.
- Florida and Texas are hotspots for "underwater" mortgages.
- Home equity has increased by nearly 80% since 2020.
- American homeowners share $35 trillion in housing wealth.