As CCRCs continue to bounce back from the housing crisis, some operators may still experience trouble attracting seniors who can’t sell their homes to afford the entrance fee.
But there are positive signs on the horizon, as baby boomers held just 10.9% of all underwater mortgages in the second quarter of 2014, according to Zillow’s latest Negative Equity Report.
In comparison, Generation X held 18.7% and millennials held 19.6%. And nationally, one in six U.S. homeowners with mortgages — or 8.7 million people — owed more than their homes were worth.
Overall, the negative equity rate — the percentage of homeowners who are underwater on their mortgage — dropped to 17% nationwide in the second quarter of 2014 from 23.8% a year prior and 18.8% in the first quarter of 2014. Looking ahead, Zillow projects the rate to drop to 14.9% by the end of the second quarter of 2015.
The rate continues to recede as home values keep growing, but the trend will likely move at a slower pace because the rate of home value growth is slowing and expected to continue to slow.
Editor’s note: This article has been updated to reflect corrections Zillow issued, which rescinded previous conclusions.
Written by Emily Study