Bottom five cities
The five cities struggling most with underwater homeowners:
Virginia Beach, Va.
16.7% underwater, down from
34.1%. Many members of the military qualified for no-down-payment home purchases during the bubble, multiplying the pain after the meltdown, Terazzas says. Home prices are up 2.1% the past year.
Chicago
15.5% underwater, down from
41.1%. The city hasn’t benefited from the influx of technology companies that has lifted other northern industrial strongholds. Home prices are up 5.5% from a year ago.
Baltimore
14.2% underwater, down from
31.4%. Many low-income residents were targeted for subprime mortgages they couldn’t afford. Home prices are up 4.4% annually.
Cleveland
13% underwater, down from 33.9%. The industrial city has refashioned itself as a biomedical hub, but its population has flatlined in recent years. Home prices are up 6.5%.
St. Louis
12% underwater, down from 31.1%. Like Cleveland, St. Louis has diversified its industrial-based economy but its population is declining.