Highest foreclosure ZIP codes slower to recover from the bust

by Steve Randall06 Nov 2018

High rates of foreclosures in a ZIP code mean a slower recovery from the housing bust according to a new Zillow analysis.

It found that those homes where foreclosures were highest during the crisis are still struggling to recover. In the 35 largest metros, 54.3% of homes in ZIP codes with fewer foreclosures have fully recovered, while in the high-foreclosure ZIP codes the recovery rate is 39.1%.

Those markets where the divergence of recovery is greatest include all 6 major California metros including San Francisco, San Jose, Los Angeles and San Diego.

Nineteen of the metros saw 10% more homes fully recovered in low-foreclosure ZIP codes than in those with high foreclosures; in 13 it’s at least double; in three (Riverside, Las Vegas and Washington, D.C) it’s at least four times as high.

But five metros have bucked the trend with high-foreclosure areas recovering at slightly higher rate.

Nationally, median home values are about 9.8 percent above what they were at the bubble's peak and less than 10 percent of homeowners are underwater on their mortgages.

Metropolitan Area

Share of Homes
Recovered in ZIPs
with Low
Foreclosure Rates

Share of Homes
Recovered in ZIPs
with High
Foreclosure Rates

Median Home
Value

Change from
Pre-Recession
Peak Value

Atlanta, GA

77.6%

39.4%

$209,700

13.6%

Austin, TX

99.0%

95.5%

$300,600

50.8%

Baltimore, MD

5.8%

4.3%

$265,600

-11.0%

Boston, MA

90.8%

78.0%

$458,000

19.7%

Charlotte, NC

78.7%

84.6%

$199,400

26.0%

Chicago, IL

11.4%

14.4%

$222,200

-12.6%

Cincinnati, OH

61.8%

56.6%

$164,500

12.5%

Cleveland, OH

50.4%

12.8%

$142,700

-0.8%

Columbus, OH

88.0%

54.1%

$184,200

22.6%

Dallas, TX

95.3%

93.1%

$233,200

53.0%

Denver, CO

99.2%

97.8%

$398,400

65.9%

Detroit, MI

48.8%

20.9%

$157,200

-0.9%

Houston, TX

93.7%

89.6%

$200,900

34.3%

Indianapolis, IN

84.4%

40.3%

$157,200

19.0%

Kansas City, MO

87.2%

56.9%

$185,500

19.3%

Las Vegas, NV

8.1%

1.6%

$273,800

-13.6%

Los Angeles, CA

82.7%

38.0%

$647,100

6.2%

Miami, FL

9.0%

11.8%

$278,400

-10.7%

Minneapolis, MN

63.8%

50.9%

$263,300

9.4%

New York, NY

34.9%

32.5%

$431,000

-4.8%

Orlando, FL

11.4%

4.8%

$231,000

-12.9%

Philadelphia, PA

23.3%

36.1%

$229,300

-3.4%

Phoenix, AZ

17.7%

6.2%

$258,300

-9.0%

Pittsburgh, PA

80.4%

51.8%

$142,300

28.1%

Portland, OR

74.6%

87.5%

$391,400

33.3%

Riverside, CA

14.1%

1.9%

$362,000

-11.7%

Sacramento, CA

24.4%

7.3%

$400,600

-5.3%

San Antonio, TX

95.8%

92.3%

$187,800

31.0%

San Diego, CA

88.0%

28.2%

$589,200

9.6%

San Francisco, CA

95.6%

45.7%

$961,200

36.4%

San Jose, CA

99.9%

86.8%

$1,288,700

73.3%

Seattle, WA

97.2%

90.8%

$486,600

27.6%

St. Louis, MO

50.5%

14.1%

$163,100

4.6%

Tampa, FL

27.5%

16.4%

$208,400

-6.8%

Washington, D.C.

31.3%

5.2%

$401,000

-7.9%

 

 


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