Where Homeowners Are Still Underwater

Some low-income, mostly minority neighborhoods may never recover from the mortgage crisis.

Add to Briefcase
Brian Mcgill, Stephanie Stamm and Sophie Quinton
June 26, 2014, 5:29 a.m.

There’s been a lot of en­cour­aging news about the hous­ing mar­ket re­cently. New home sales are up, fore­clos­ures are down, and a de­creas­ing num­ber of people owe more on their mort­gages than their homes are cur­rently worth, ac­cord­ing to the De­part­ment of Hous­ing and Urb­an De­vel­op­ment. Last month, homeown­ers’ equity reached the highest level since the re­ces­sion began. 

Minority Majority National Journal

But the crisis isn’t over, ac­cord­ing to a re­cent re­port from the Haas In­sti­tute for a Fair and In­clus­ive So­ci­ety at the Uni­versity of Cali­for­nia (Berke­ley). About 9.8 mil­lion homes are still un­der­wa­ter, the re­port said (HUD says the num­ber is 6.28 mil­lion).

The re­port’s au­thors ana­lyzed home-equity data from Zil­low, an on­line real-es­tate data­base, and demo­graph­ic data from the Census Bur­eau to find out how many homes per ZIP code are still un­der­wa­ter and who owns them. They found that neigh­bor­hoods in which more than 40 per­cent of homeown­ers have neg­at­ive equity tend to have two things in com­mon: a me­di­an house­hold in­come be­low the na­tion­al av­er­age and a dis­pro­por­tion­ate share of Afric­an-Amer­ic­an and Latino res­id­ents.

Rollover the circles in the map be­low to find out more about the hard­est-hit ZIP codes. Mouse, scroll, or double click to zoom in. And check out the full re­port here.


Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.