Where Homeowners Are Still Underwater

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

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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. 

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.

Top Zip Codes With Hous­ing Un­der­wa­ter

Top Zip Codes With Housing Underwater

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.


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