Dubious distinction: Chicago leads all cities in “seriously underwater” mortgages, report says

About 260K homes qualify; New York ranked second on the list

TRD CHICAGO /
Nov.November 09, 2018 02:15 PM

(Credit: iStock)

Chicago had the most “seriously underwater” mortgages of the nation’s 10 largest metro markets.

Some 13.1 percent of Chicago-area homeowners owed at least 25 percent more than what their homes are worth, according a third-quarter report from Attom Data Solutions, Crain’s reported. The national average was 8.8 percent.

Chicago’s percentage works out to 260,000 homes with underwater mortgages. New York has the second-most seriously underwater mortgages with 172,000, but that’s only 6.7 percent of homes there, or about half the percentage in Chicago.

Chicago also has the smallest share of homeowners who are “equity rich” — 16.8 percent — meaning they owe at least 25 percent less than their house is worth, according to the report. The national average for those who are equity rich was 25.7 percent.

Overall, Chicago leads the nation in homes that are in any way underwater, well out-pacing second-place Miami.

The result is more homeowners staying in their homes longer, hurting the housing market. And with little equity to tap, they’re spending less, which hurts the overall economy, an analyst told Crain’s.

Experts blamed a lack of homes listed for sale with helping to drive a 16.6 percent decline in Chicago home sales in September. The declining in home sales is most pronounced in properties worth less than $500,000. [Crain’s] — John O’Brien


Related Articles

arrow_forward_ios
1247-1249 W. Madison Street (Photos via @properties)

Dwelle Properties pays $33M for West Loop mixed-use complex

Dwelle Properties pays $33M for West Loop mixed-use complex
Plaza on DeWitt, 260 E. Chestnut Street

Downtown condo ponders mask mandate, big penalties

Downtown condo ponders mask mandate, big penalties
Homebuyers have flocked to Bronzeville (Credit: Google Maps)

Chicago homebuyers head to Bronzeville for more space

Chicago homebuyers head to Bronzeville for more space
Penny Pritzker and North Kenmore Avenue (Credit: Google Maps)

Office of Penny Pritzker picks up Lincoln Park mansion

Office of Penny Pritzker picks up Lincoln Park mansion
211 N Harbor Dr in Lakshore East (Redfin; iStock)

Supply glut may set downtown home market back a year

Supply glut may set downtown home market back a year
Robert Reffkin and Fran Broude (Getty, Linkedin, iStock)

Compass taps ex-Coldwell exec to oversee Chicago growth

Compass taps ex-Coldwell exec to oversee Chicago growth
Tower of power: a look at who’s buying at No. 9 Walton

Tower of power: a look at who’s buying at No. 9 Walton

Tower of power: a look at who’s buying at No. 9 Walton
(Credit: iStock)

Chicago-area home values saw poor start to 2020

Chicago-area home values saw poor start to 2020
arrow_forward_ios

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

Loading...