Undercurrent

Underwater homes in Nevada, once the majority, now a rarity 

By: - December 9, 2021 1:46 pm

(Getty Images photo)

Just 1% of homes in Nevada had negative equity in the third quarter of 2021, according to CoreLogic, the analyst that named Nevada the most underwater state in the U.S. in March of 2013, when 52% of homeowners owed more than their property was worth.  

The average home in Nevada gained $80,000 in equity between the third quarter of last year and this year, compared with the average equity gain in the U.S. of $57,000.

The COVID-induced buying boom generated a price increase of 17% nationwide year-to-year at the end of September, a 45-year record according to CoreLogic. 

“These equity gains provided a crucial barrier against foreclosure for the 1.2 million borrowers who reached the end of forbearance in September,” CoreLogic reported. 

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth,” said CoreLogic analyst Frank Martell. “This financial reserve will be especially helpful for homeowners looking to fund renovation projects.“

California had the lowest share of properties with negative equity at .8%

Louisiana had the highest rate with 7.4% of homes upside down. 

The west led the nation in equity gains with homes in California enjoying an average increase of $119,000, followed by Washington with an average increase of $96,000, Arizona at $92,000 and Utah at $91,000. 

North Dakota had the lowest average increase in equity at $15,000. 

Homeowners with mortgages (just under two-thirds of all properties in the U.S.) have seen their equity increase by more than $3.2 trillion since the third quarter of 2020, up 31% year-to-year, according to CoreLogic.

The number of homes in the U.S. with negative equity fell from 7.8% to 2.1% year-to-year in the third quarter.  

Negative equity peaked during the Great Recession in the fourth quarter of 2009, when CoreLogic reported 26% of properties nationwide were upside down.

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Dana Gentry
Dana Gentry

Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana has four adult children, two grandsons, three dogs, three cats and a cockatoo named Casper.

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