Negative equity may be down in Chicagoland, but that doesn’t mean that it’s no longer a problem.
Last week, we reported a much-needed dosage of good news – that after peaking a few years back, negative equity in Chicagoland has fallen a pronounced 38.5 percent, putting it closer in line with the rest of the nation.
This week, though, we’re bringing things back down to earth with a troubling nuance to that decline – simply, that though negative equity had declined by marked amounts in Chicagoland’s upper-tier housing markets, it remains a considerable problem in lower-tier markets.
Based on exclusive numbers that Zillow provided us, here is now it breaks down:
- In Chicagoland’s upper-tier markets, which Zillow considers homes priced $267,250 and above, only 10.38 percent of homes are in negative equity.
- In the middle-tier markets, though, which are priced $146,550 to $267,250, that share rises to 23.90 percent.
- And finally, in the lower-tier markets priced $146,550 and below, that share catapults to 41.43 percent – basically four times that of the upper-tier markets.
See our graph below to see how Chicagoland’s numbers compare with other major metro areas: