Las Vegas reigned as the foreclosure capital of the nation for four years in a row after the real estate bubble burst in 2007, but that title no longer belongs to the desert town. Las Vegas was able to shake the dubious moniker of “Foreclosure Capital USA”, but it still retains an equally troubling title: “Underwater Epicenter.” At the close of 2012, Zillow released a survey showing that 59% of Las Vegas homeowners are still upside down in their mortgages. This number is enough to place Las Vegas firmly ahead of runner-up Atlanta, which reports just under 48% of its homes underwater as of the end of last year.
Dismal as this statistic is for Las Vegas, it is a vast improvement from one year ago. In fact, underwater homes in Las Vegas are actually down 70% from 2011. This improvement is projected to continue through 2013, but at a much slower pace. And, regardless of next year’s gains, analysts project that Las Vegas will retain the title of “Underwater Epicenter” for the foreseeable future.
Nationally, just under 28% of homeowners report that they owe more than their home is worth. This is down from 31% at the close of 2011. Zillow attributed much of this gain to the 5.9% average increase in U.S. home values last year. Las Vegas’ rise in median home value far outpaced the national average last year, coming in at 14%.
Why does Las Vegas struggle so much in particular with foreclosure? It doesn't seem to be particularly struggling with its economy. It seems to me either an issue with poor property management or just irresponsible people. These stats are baffling to me.
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