DataMarkets & Economy

Foreclosure home values skyrocket since recession

Zillow reveals foreclosed homes across the US have rebounded much faster than the overall rate
  • A recent Zillow report shows foreclosed home values gaining much faster compared to U.S. properties overall.
  • Prior to the recession, homeownership rates among low-income households rose from 65 percent in the mid-90s to almost 70 percent in 2006.
  • A staggering 46.7 percent of lower tier homes fell into foreclosure.

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Not everyone was hit equally hard by the recession and housing bust. A recent Zillow report shows low-end homes were more likely to be foreclosed during the housing crisis, but also that foreclosure home values are gaining at a much faster rate compared to U.S. properties overall. Prior to the recession, homeownership rates among low-income households rose from 65 percent in the mid-90s to almost 70 percent in 2006. Because so many homeowners were forced to leave their investments, they lost the opportunity to partake in the promising recovery. What did this mean for most low-income earners? Not only did they invest what little savings they had into a unprofitable venture, they also had to start over by possibly renting in an extremely hot market. "Income inequality is an important topic in the U.S. right now, because the gap between the richest and poorest Americans is growing," Zillow Chief Economist Dr. Svenja Gudell said in a statement. The wealth gap grows a...