Negative Equity Falls in Q2; Half of Borrowers Under 40 Underwater
Today Zillow released our second quarter Negative Equity Report. While we’re happy to report that the negative equity rate for U.S. homeowners with a mortgage has declined to 30.9 percent from 31.4 percent in the first quarter, deeper analysis of the data shows that it disproportionately affects borrowers under age 40.
Nearly half (48 percent) of homeowners with mortgages under the age of 40 are underwater, our analysis found. You can find more about underwater homeowners by age on the Zillow Real Estate Research page.
Overall, the cumulative amount of negative equity also declined. There were 15.3 million homes underwater, totaling $1.15 trillion in negative equity in the second quarter, down from 15.7 million homes and $1.19 trillion in negative equity in the first quarter.
The detailed Zillow Negative Equity Report is also available on the Zillow Real Estate Research page.
You can see how negative equity affects your area in an interactive visualization by clicking on the map below.