These 11 metro areas have the highest percentage of underwater homes

A diver takes pictures as people look at sharks from an underwater room structure in the Aquarium of Paris, France.
Reuters/Charles Platiau

The burst of the housing bubble led to quite a few homes with negative equity, and in some areas of the country, that hasn’t changed.

Negative equity occurs when a home owner owes more on their loan than their home is worth. When the housing bubble burst, a lot of home owners found themselves with negative equity, also known as being underwater.

“For years,Las Vegashas been the prime example of the housing bubble and bust, with nearly three-quarters of mortgaged homeowners underwater when the market bottomed out in the first quarter of 2012,” Zillow said in its recent “Negative Equity Report.”

It continued: “But Chicago now has the highest negative equity rate among large U.S. markets, surpassing Las Vegas in the first quarter of 2016.”

The number of underwater homes started to thin in recent years, but several markets in the US are not faring as well as others.

Read on to see which metro areas have the highest rate of underwater homes:

11. Indianapolis, Indiana

Flickr/Valerie Everett

2016 Q1 Negative Equity Rate: 14.90%

2015 Q4: 14.60%

2012 Q1: 28.80%

10. Philadelphia, Pennsylvania

Flickr / Bev Sykes

2016Q1 Negative Equity Rate: 14.90%

2015 Q4: 15%

2012 Q1: 25%

9. Washington, DC

Courtesy of Sotheby’s Realty

2016Q1 Negative Equity Rate: 15.10%

2015 Q4: 15.30%

2012Q1: 32.40%

8. Detroit, Michigan

Barry Bland/Barcroft Media/Getty

2016Q1 Negative Equity Rate: 15.40%

2015 Q4: 16.10%

2012Q1: 49.80%

7. Kansas City, Missouri

Wikimedia Commons

2016Q1 Negative Equity Rate: 15.50%

2015 Q4: 16.40%

2012Q1: 36.70%

6. St. Louis, Missouri


2016Q1 Negative Equity Rate: 16%

2015 Q4: 17%

2012Q1: 30.70%

5. Cleveland, Ohio

Reuters / Shannon Stapleton

2016Q1 Negative Equity Rate: 16.60%

2015 Q4: 17.10%

2012Q1: 33.90%

4. Atlanta, Georgia

joaquin uy/Flickr

2016Q1 Negative Equity Rate: 16.60%

2015 Q4: 17.60%

2012Q1: 55.20%

3. Baltimore, Maryland

Photo by Alec MacGillis

2016Q1 Negative Equity Rate: 17.20%

2015 Q4: 17.40%

2012Q1: 31.40%

2. Las Vegas, Nevada

US Treasury

2016Q1 Negative Equity Rate: 20.20%

2015 Q4: 20.90%

2012Q1: 71%

1. Chicago, Illinois


2016Q1 Negative Equity Rate: 20.30%

2015 Q4: 20.50%

2012Q1: 41.10%

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