16% of U.S. homeowners are “under water”: they owe more in mortgages than their homes are worth. This compares with 6% the year before and 4% in 2006. For those who purchased their homes in the last 5 years, the numbers are even worse — 29% owe more than the current value of their homes.
The 5 hardest-hit areas are all Sunbelt cities:
|Metro Area||New (<5 yrs) buyers “under water”||Price change since peak|
|Las Vegas, NV||56%||-31.5%|
|San Diego, CA||51.3%||-32.4%|
|Los Angeles, CA||39.9%||-31.3%|