1 in 3 Providence, Kent homeowners underwater on mortgagesMay 31st, 2012 at 5:00 am by Ted Nesi under Nesi's Notes, On the Main Site
More than one out of every three homeowners in Providence County – 37% of all borrowers – are still underwater, meaning they owe more on their mortgages than their properties are worth, according to first-quarter data compiled by Zillow. That puts it among the worst 20% of all U.S. counties.
The situation isn’t much better in Kent County, which includes Warwick, where 34% of homeowners are underwater. Negative equity is much less prevalent in the southern part of the state, with underwater rates of 17% in Newport and Washington counties and 15% in Bristol County.
Three-fourths of Rhode Island residents live in Providence and Kent counties, and they’re caught in a regional phenomenon; at least 30% of mortgages underwater across a broad swath of Central Massachusetts, Northeast Connecticut and the northern half of Rhode Island, according to Zillow.
Housing prices in Rhode Island dropped 24% between the second quarter of 2006 and the first quarter of this year after soaring 151% from 1997 to 2006, according to the Federal Housing Finance Agency’s index.
(map via Zillow)