Tuesday, February 8, 2011

Surprising Housing Statistic...

USA Today is reporting that, if I'm reading this chart correctly, over 70% of the homes in Clark County, Nevada (Las Vegas) are underwater--that is, they owe more on the mortgage than the value of the home.

If that's the case, then the impact of the continuing high employment in the area is likely to result in more walkaways.  In turn, the downhill result of this is most likely less property tax receipts, more vacancies, and a continued lack of new construction (because supply outstrips demand).

This could lead to some very interesting land use trends in the Las Vegas area--namely, what do you do with a large inventory of vacant houses--many of which could be voluntary walkaways because of the underwater nature of the house.

Chad Emerson

http://lawprofessors.typepad.com/land_use/2011/02/surprising-housing-statistic.html

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Comments

Remember, also, that 71% of all current mortgages in Clark County, NV are underwater AFTER the thousands and thousands that have already been foreclosed 2008-2010.

NV is a recourse state which is keeping many income-earning middle class homeowners from walking so as to avoid the inevitable bankruptcy that would accompany such a move.

Posted by: amercianaspirations | Feb 10, 2011 7:42:57 PM