Sixty-Five Percent of Nevada Homeowners Underwater

Today more than a quarter of all homeowners are "underwater." That is, the value of their house is less than what they owe in mortgage payments. That means 10.7 million people with negative equity in their homes. Ruth Simon and James Hagerty of the Wall Street Journal explain the larger implications:


These so-called underwater mortgages pose a roadblock to a housing recovery because the properties are more likely to fall into bank foreclosure and get dumped into an already saturated market. Economists from J.P. Morgan Chase & Co. said Monday they didn't expect U.S. home prices to hit bottom until early 2011, citing the prospect of oversupply.

Which states have the highest percentage of "negative equity"? MichiCaliFlAriVada, of course.

For months, Atlantic Business has been following the sad states of Michigan, California, Florida, Arizona and Nevada -- or, collectively, Michicaliflarivada. Some or all of those states are tops in the nation in unemployment, foreclosure rates, and credit card debt. Now the five states with the percentage of underwater homeowners are, in order, Nevada, Arizona, Florida, Michigan and California -- the whole crew. Unbelievably, about half of homeowners in Arizona and Florida have negative equity, and in Nevada sixty-five percent are underwater.

If you'd like a better grasp of the homeowner crisis, check out this useful (I hesitate to call it "fun" considering the content) chart.

Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In