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

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

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


City to redevelop land near 95th Red Line Station, Chicago’s slumping housing market gets slight reprieve: Daily digest

From left: One Bennett Park, 403 North Wabash Avenue, 1109 West Washington Boulevard (Credit: Related and Redfin)

Here are the priciest home sales in Chicago last week

Chicago ultra-luxury homes see major price cuts, more Sears closings: Daily Digest

Homes in Chicago's Archer Heights neighborhood (Credit: iStock)

Chicago Cheat Sheet: Chicago home value growth hits 3-year low, another suburban corporate exodus…& more

Michael Larsen and an aerial view of Chicago (Credit: Linkedin, iStock)

Amid Chicago’s luxury housing market lull, there is life in Winnetka

Alderman Roberto Maldonado (26th) and the 606 trail (Credit: Facebook, David Wilson via Flickr)

Alderman wants to downzone properties near the 606 to halt development frenzy

Perkins & Will architect Greg Tamborino and his winning prototype for the Disruptive Design Competition

Chicago’s next iconic starter-home could look like this

Brothers Jon and Julian Mickelson and 606 East Woodland Park Avenue

After buying bulk of Bronzeville condo complex, two brothers decide against deconversion