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The 20 Cities With The Most Underwater Homes

Gus Lubin | Nov. 11, 2010, 2:02 PM | 122,733 | 24

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Could four in five mortgageholders fold?

The scariest number for anyone invested in the real estate market is this: 23.2%.

That's the record-high share of mortgages that are now underwater, as estimated by Zillow.

Negative equity is the prime factor driving a record number of mortgage holders into delinquency. Delinquencies will lead to foreclosures, which will drive down home prices, creating more negative equity -- a very dangerous cycle.

In some parts of America, a gob smacking percentage of homes are underwater. In Las Vegas, for instance, four out of five mortgages are now underwater.

1. Vero Beach, Fla. -- 43.4% of mortgages underwater

Image: Zillow

MOM change: -1.1%

YOY change: -9.8%

Source: Zillow

2. Melbourne, Fla. -- 43.7% of mortgages underwater

Image: flickr

MOM change: -1.7%

YOY change: -15.1%

Source: Zillow

3. Sarasota, Fla. -- 46.3% of mortgages underwater

Image: flickr

MOM change: -1.2%

YOY change: -6.9%

Source: Zillow

4. Tucson, Ariz. -- 46.3% of mortgages underwater

Image: flickr

MOM change: -1.4%

YOY change: -8.7%

Source: Zillow

5. Tampa, Fla. -- 46.8% of mortgages underwater

MOM change: -1.7%

YOY change: -9.1%

Source: Zillow

6. Riverside, Calif. -- 48.1% of mortgages underwater

Image: AP

MOM change: 0.0%

YOY change: 0.9%

Source: Zillow

7. Jacksonville, Fla. -- 48.2% of mortgages underwater

MOM change: -0.5%

YOY change: -10.6%

Source: Zillow

8. Bakersfield, Calif. -- 48.2% of mortgages underwater

Image: flickr

MOM change: -1.2%

YOY change: -3.8%

Source: Zillow

9. Merced, Calif. -- 49.7% of mortgages underwater

MOM change: 0.7%

YOY change: 6.1%

Source: Zillow

10. Vallejo, Calif. -- 51.3% of mortgages underwater

Image: flickr

MOM change: 0.1%

YOY change: -0.4%

Source: Zillow

11. Fort Myers, Fla. -- 51.6% of mortgages underwater

Image: flickr

MOM change: -0.8%

YOY change: -4.7%

Source: Zillow

12. Port St. Lucie, Fla. -- 52% of mortgages underwater

Image: flickr

MOM change: -0.7%

YOY change: -10.1%

Source: Zillow

13. Lakeland, Fla. -- 53.7% of mortgages underwater

MOM change: -1.1%

YOY change: -14.7%

Source: Zillow

14. Modesto, Calif -- 53.9% of mortgages underwater

Image: Tom Hilton on flickr

MOM change: 0.1%

YOY change: 2.1%

Source: Zillow

15. El Centro, Calif -- 55% of mortgages underwater

MOM change: -0.2%

YOY change: -6.9%

Source: Zillow

16. Stockton, Calif. -- 57.5% of mortgages underwater

Image: AP

MOM change: 0.0%

YOY change: 2.2%

Source: Zillow

17. Orlando -- 64.2% of mortgages underwater

MOM change: -0.7%

YOY change: -11.9%

Source: Zillow

18. Reno -- 64.4% of mortgages underwater

Image: Flickr / Matt Honan

MOM change: -1.1%

YOY change: -9.9%

Source: Zillow

19. Phoenix -- 68.4% of mortgages underwater

MOM change: -1.4%

YOY change: -12.8%

Source: Zillow

20. Las Vegas -- 80.2% of mortgages underwater

MOM change: 0.1%

YOY change: -4.2%

Source: Zillow

This is going to be bad for the market...

New Report Warns Of "Unprecedented Decline" In Home Values And No Stabilization In Q3 >

Tags: Foreclosure, Real Estate, Las Vegas, California, Florida, Housing, Features | Get Alerts for these topics »

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