SEATTLE, July 18, 2017 /PRNewswire/ -- Gen X
homeowners bore the brunt of the housing crash, and it still shows
a decade later as they lag behind in gaining equity in their homes,
according to the new Zillow Home Equity Report.
Millennials have almost as much equity as the older Gen X
homeowners, despite having had much less time to gain
equity.
The Zillow Equity Report for the first quarter of 2017 tracks
the home equity of more than 50 million homeowners who have a
mortgage. The report, which will be released twice a year, tracks
the debt that U.S. homeowners are carrying on their homes by age
and location.
Highlights from the report:
- The median homeowner with a mortgage has $78,683 in home equity. Homeowners who own their
homes outright typically have $177,158 in home equity.
- The median homeowner has a loan-to-value ratio of 62.2, or owes
62.2 percent of their home's current value.
- 75.7 percent of homeowners have at least 20 percent equity in
their homes, enough to cover the costs of selling or refinancing
their home.
- Five percent of mortgaged homeowners are close to owning their
homes free and clear.
- 10.4 percent of mortgaged homeowners have negative equity. In
the first quarter of 2012, 31.4 percent of homeowners were
underwater.
Among mortgaged homeowners, the typical millennial (less than 35
years old) owes the bank about 76 percent of their home's current
value. The median Gen X (35 to 50 years old) homeowner owes 70
percent of their home's value. Boomers (50-65 years old) owe about
56 percent of their home's value, and silent generation (65 and
older) homeowners with a mortgage owe 45 percent.
"Roughly half of American wealth is held in home equity," said
Zillow Chief Economist Dr. Svenja
Gudell. "Paying off the home mortgage is a key step toward
retirement for most Americans, and it's clear from these results
that Generation X is further from that goal than older generations
because of the Great Recession. The good news is that home values
are still growing relatively fast in most places, building up home
equity for homeowners who rely on the investment they've made in
their home."
The difference in how much Gen X homeowners owe on their home
loans is an example of how uneven the housing recovery has been
across the country.
- In Baltimore, which has seen a
sluggish recovery, Gen X owners with a mortgage owe a median of 79
percent of their homes' value. In Chicago, where homes are still 15 percent
below the highs reached during the bubble, Gen X homeowners owe
77.3 percent of their homes' value.
- Gen X homeowners are doing particularly well in the Bay Area,
where home values have grown about 75 percent over the past five
years. San Jose is the only metro
where mortgaged Gen X homeowners owe less than half of their homes'
value, and San Francisco
homeowners are not far behind, owing 51.4 percent of their homes'
worth.
Metropolitan
Area
|
Percent of
Homes in
Negative
Equity, 2017 Q1
|
Loan-to-Value
Ratio - All
Mortgaged
Homeowners
|
Loan-to-
Value Ratio -
Mortgaged
Gen X
Homeowners
|
Loan-to-Value
Ratio -
Mortgaged
Millennial
Homeowners
|
United
States
|
10.4%
|
62.2
|
70.1
|
76.2
|
New York/Northern New
Jersey
|
9.2%
|
54.3
|
65.7
|
68.9
|
Los Angeles-Long
Beach-Anaheim, CA
|
5.6%
|
49.9
|
60.1
|
65.5
|
Chicago,
IL
|
16.4%
|
68.6
|
77.3
|
76.5
|
Dallas-Fort Worth,
TX
|
N/A
|
54.1
|
58.7
|
67.7
|
Philadelphia,
PA
|
11.4%
|
65.8
|
75.3
|
81.5
|
Houston,
TX
|
N/A
|
61.1
|
66.3
|
77.2
|
Washington,
DC
|
12.1%
|
66.4
|
74.0
|
77.5
|
Miami-Fort
Lauderdale, FL
|
9.9%
|
55.4
|
63.6
|
66.3
|
Atlanta,
GA
|
12.2%
|
66.3
|
71.2
|
72.2
|
Boston, MA
|
6.3%
|
52.8
|
62.6
|
67.4
|
San Francisco,
CA
|
3.6%
|
42.6
|
51.4
|
58.5
|
Detroit,
MI
|
11.4%
|
60.5
|
67.1
|
65.3
|
Riverside,
CA
|
10.1%
|
62.4
|
68.4
|
71.2
|
Phoenix,
AZ
|
10.6%
|
65.8
|
72.2
|
73.8
|
Seattle,
WA
|
6.5%
|
55.6
|
61.9
|
67.5
|
Minneapolis-St Paul,
MN
|
7.2%
|
62.7
|
68.9
|
70.8
|
San Diego,
CA
|
6.2%
|
57.0
|
64.6
|
70.1
|
St. Louis,
MO
|
12.4%
|
67.5
|
75.1
|
77.9
|
Tampa, FL
|
9.0%
|
60.0
|
67.8
|
70.2
|
Baltimore,
MD
|
13.8%
|
69.5
|
79.0
|
82.3
|
Denver, CO
|
4.8%
|
53.2
|
58.1
|
65.4
|
Pittsburgh,
PA
|
7.9%
|
57.5
|
66.0
|
74.6
|
Portland,
OR
|
4.2%
|
53.2
|
58.9
|
66.2
|
Charlotte,
NC
|
8.0%
|
64.2
|
69.6
|
75.3
|
Sacramento,
CA
|
7.1%
|
58.8
|
65.4
|
67.0
|
San Antonio,
TX
|
N/A
|
64.5
|
71.7
|
82.0
|
Orlando,
FL
|
10.0%
|
62.1
|
68.7
|
69.9
|
Cincinnati,
OH
|
9.7%
|
65.9
|
72.4
|
76.2
|
Cleveland,
OH
|
13.4%
|
67.2
|
75.9
|
77.2
|
Kansas City,
MO
|
12.0%
|
69.4
|
75.1
|
79.5
|
Las Vegas,
NV
|
15.9%
|
70.7
|
75.0
|
74.6
|
Columbus,
OH
|
8.7%
|
63.9
|
69.7
|
73.9
|
Indianapolis,
IN
|
12.2%
|
71.1
|
76.2
|
81.3
|
San Jose,
CA
|
2.8%
|
39.4
|
47.4
|
57.5
|
Austin, TX
|
N/A
|
57.6
|
62.8
|
74.1
|
Zillow
Zillow® is the leading real estate and rental marketplace
dedicated to empowering consumers with data, inspiration and
knowledge around the place they call home, and connecting them with
the best local professionals who can help. In addition, Zillow
operates an industry-leading economics and analytics bureau led by
Zillow's Chief Economist Dr. Svenja
Gudell. Dr. Gudell and her team of economists and data
analysts produce extensive housing data and research covering more
than 450 markets at Zillow Real Estate Research. Zillow also
sponsors the quarterly Zillow Home Price Expectations Survey, which
asks more than 100 leading economists, real estate experts and
investment and market strategists to predict the path of the Zillow
Home Value Index over the next five years. Launched in 2006, Zillow
is owned and operated by Zillow Group (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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