Minority-owned homes in LA are more likely to be underwater: report

Greater LA, however, posts a much lower rate of negative equity homes than national average

TRD LOS ANGELES /
Jan.January 13, 2017 01:00 PM

Minorities in Los Angeles are more likely to have negative equity loans, a recent Zillow report suggests.

In L.A.’s predominantly Latino neighborhoods, 7 percent of all homeowners owe more on their mortgages than their homes are worth — that’s compared to 4.3 percent of homeowners in predominantly white neighborhoods and 5.7 percent of all homeowners in L.A., according to the Zillow report.

Known as underwater loans, negative equity situations are even more prevalent among African African homeowners. Although Zillow did not have enough data on predominantly black districts to calculate an L.A.-specific rate, one in five black households in America have underwater loans — that’s twice the overall U.S. underwater rate of 10.9 percent.

“Homeowners in predominantly black communities are twice as likely to be underwater on their mortgages as homeowners in mostly white communities,” Zillow found, attributing the disparaging numbers to the aftermath of the recession and housing crisis of 2007.

“Our previous research has shown that negative equity is more concentrated among less expensive homes, and now we know that it is also more prevalent in minority neighborhoods than in white communities, which are also trailing in the overall housing recovery,” Zillow chief economist Svenja Gudell said in a statement. “These gaps can and will have long-lasting implications for growth and equality.”

Nationally, the rate of homeowners with underwater loans is 9.9 percent for white areas and 12 percent for Latino neighborhoods. [LA Weekly]Cathaleen Chen


Related Articles

arrow_forward_ios
CAR’s 2020 president, Jeane Radsick

California realtors to federal government: Please drop government-backed mortgage premiums

California realtors to federal government: Please drop government-backed mortgage premiums
California Gov. Gavin Newsom (Credit: Justin Sullivan/Getty Images)

Newsom and the banks strike residential mortgage relief deal

Newsom and the banks strike residential mortgage relief deal
Buyer of $94M “Billionaire” mansion in Bel Air takes out $58M mortgage (Credit: iStock)

They’re just like us! “Billionaire” manse buyer takes out $58M mortgage

They’re just like us! “Billionaire” manse buyer takes out $58M mortgage
(Credit: iStock)

Homeowners in deep: Across US, 1 in 11 mortgaged homes are “seriously underwater”

Homeowners in deep: Across US, 1 in 11 mortgaged homes are “seriously underwater”
Small mortgages are increasingly hard to come by

Mortgage lenders are denying more small loan applicants, hurting homebuyers: report

Mortgage lenders are denying more small loan applicants, hurting homebuyers: report
Fast money: Lenders race to close on home mortgages

Fast money: Lenders race to close on home mortgages

Fast money: Lenders race to close on home mortgages
House tax bill contains early holiday gifts for homeowners

House tax bill contains early holiday gifts for homeowners

House tax bill contains early holiday gifts for homeowners
New options open for homeowners seeking a reverse mortgage

New options open for homeowners seeking a reverse mortgage

New options open for homeowners seeking a reverse mortgage
arrow_forward_ios

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

Loading...