One in five Bronx homeowners have underwater mortgages

First-time buyers hardest hit by falling property values in the borough

New York /
May.May 20, 2014 09:00 AM

For every five homeowners in the Bronx, almost one of them had debt that exceeds the value of their property during the first quarter, according to a negative equity report from Zillow.

The Bronx led the city in underwater mortgages, in which a sale would result in a loss. Property values in the borough fell by 12 percent from 2010 to 2012, according to Furman Center for Real Estate and Urban Policy data cited by Crain’s. Homes owned by first-time buyers often fall into the negative-equity category.

While almost 20 percent of Bronx homeowners have underwater mortgages, the quantity is much smaller in the Brooklyn, where only 9 percent is affected, the study showed.

“For anyone who is looking to get into the housing market, it is a lot harder to find first-time homes, since a lot of them are occupied by people who are underwater on their mortgages,” Stan Humphries, chief economist for Zillow, told Crain’s. [Crain’s]Mark Maurer


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image
Zillow to pay $50M for StreetEasy
Zillow to pay $50M for StreetEasy
Tomo Co-Founders Carey Armstrong and Greg Schwartz (LinkedIn via Schwartz and Armstrong, Getty)
Tomo digital mortgage startup enters Texas, Washington markets
Tomo digital mortgage startup enters Texas, Washington markets
Last year more people relocated to ZIP codes with lower home values and more space. (Getty)
Long-distance movers found cheaper and larger homes in 2020
Long-distance movers found cheaper and larger homes in 2020
Pacaso’s Spencer Rascoff and Austin Allison (iStock, Pacaso)
Second-home startup Pacaso to offer agents stock
Second-home startup Pacaso to offer agents stock
Zillow CEO Rich Barton (Getty)
Zillow profits hit record $52M in Q1
Zillow profits hit record $52M in Q1
This is your home on tech
This is your home on tech
This is your home on tech
Rich Barton
Inside Rich Barton’s quest to dominate homebuying
Inside Rich Barton’s quest to dominate homebuying
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...