There's a Growing Problem of Underwater Properties in Colorado

The number of properties that are seriously underwater, meaning they're worth less than their owners owe, is growing in some parts of Colorado.

By Michael Roberts

November 29, 2018

iStock/DS011

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Although the real estate market in Colorado has been on a tear for years, recent signs suggest that a cool-off may finally be on the way — including the increasing number of homes in various parts of the state that are underwater.

According to the folks at Attom Data, who've just released a new report about home equity during the third quarter of 2018, a home is considered to be seriously underwater when the combined balance of loans is at least 25 percent higher than the property's estimated market value.

In other words, the owners of the house owe a quarter more than it's worth.

Attom Data's figures show that more than 4.9 million properties in the United States qualified as seriously underwater during 2018's third quarter, representing 8.8 percent of all American properties with a mortgage. That's actually down from 9.3 percent in the second quarter of 2018 but slightly up from 8.7 percent in the third quarter of last year.

Included in the report is a heat map that allows users to discover the number and percentage of underwater properties in communities by zip code — and compared to many places in other parts of the country, including the so-called Rust Belt, Colorado's in comparatively good shape, as graphically depicted in a screen capture below. The five zip codes with the highest share of seriously underwater property range from 59.2 percent in one section of Cleveland, Ohio, to 71 percent in a portion of Trenton, New Jersey — but the largest percentage in Colorado is the 81611 zip in Aspen, at 19.4 percent.

However, the latter number is up considerably from this time last year, when 15.4 percent of properties in Aspen's 81611 zip code were seriously underwater, a previous Attom Data analysis shows. The same is true for the Colorado zip with the second-highest percentage, 81657 in Vail, which has gone from 11.3 percent of homes seriously underwater to 15 percent over the past twelve months.

At present, the problem is considerably less severe in Denver and along the Eastern Slope. But if the market's winds have finally shifted, that could change. And thousands of Colorado homes are seriously underwater right now.

Continue to count down thirty Colorado zip codes, ranked from those with the lowest to the highest percentages of seriously underwater properties. Note that "MSA" stands for "Metropolitan Statistical Area."

click to enlarge

attomdata.com

City: Denver
MSA: Denver-Aurora-Lakewood
Zip Code: 80227
Number Seriously Underwater: 187
Pct Seriously Underwater: 2.2%
Q3 2018 Total with Loans: 8,692

City: Longmont
MSA: Boulder
Zip Code: 80501
Number Seriously Underwater: 205
Pct Seriously Underwater: 2.4%
Q3 2018 Total with Loans: 8,411

City: Brighton
MSA: Denver-Aurora-Lakewood
Zip Code: 80601
Number Seriously Underwater: 212
Pct Seriously Underwater: 2.5%
Q3 2018 Total with Loans: 8,426

City: Parker
MSA: Denver-Aurora-Lakewood
Zip Code: 80134
Number Seriously Underwater: 531
Pct Seriously Underwater: 2.6%
Q3 2018 Total with Loans: 20,135

City: Peyton
MSA: Colorado Springs
Zip Code: 80831
Number Seriously Underwater: 218
Pct Seriously Underwater: 2.6%
Q3 2018 Total with Loans: 8,375

City: Breckenridge
MSA: Breckenridge
Zip Code: 80424
Number Seriously Underwater: 147
Pct Seriously Underwater: 2.7%
Q3 2018 Total with Loans: 5,347

City: Aurora
MSA: Denver-Aurora-Lakewood
Zip Code: 80016
Number Seriously Underwater: 454
Pct Seriously Underwater: 2.9%
Q3 2018 Total with Loans: 15,406

City: Arvada
MSA: Denver-Aurora-Lakewood
Zip Code: 80002
Number Seriously Underwater: 120
Pct Seriously Underwater: 2.9%
Q3 2018 Total with Loans: 4,101

City: Golden
MSA: Denver-Aurora-Lakewood
Zip Code: 80401
Number Seriously Underwater: 294
Pct Seriously Underwater: 3.0%
Q3 2018 Total with Loans: 9,917

City: Evergreen
MSA: Denver-Aurora-Lakewood
Zip Code: 80439
Number Seriously Underwater: 285
Pct Seriously Underwater: 3.4%
Q3 2018 Total with Loans: 8,302

City: Aurora
MSA: Denver-Aurora-Lakewood
Zip Code: 80010
Number Seriously Underwater: 239
Pct Seriously Underwater: 3.9%
Q3 2018 Total with Loans: 6,187

City: Aurora
MSA: Denver-Aurora-Lakewood
Zip Code: 80011
Number Seriously Underwater: 336
Pct Seriously Underwater: 4.0%
Q3 2018 Total with Loans: 8,445

City: Monument
MSA: Colorado Springs
Zip Code: 80132
Number Seriously Underwater: 300
Pct Seriously Underwater: 4.0%
Q3 2018 Total with Loans: 7,436

City: Castle Rock
MSA: Denver-Aurora-Lakewood
Zip Code: 80104
Number Seriously Underwater: 330
Pct Seriously Underwater: 4.1%
Q3 2018 Total with Loans: 7,980

City: Denver
MSA: Denver-Aurora-Lakewood
Zip Code: 80202
Number Seriously Underwater: 138
Pct Seriously Underwater: 4.3%
Q3 2018 Total with Loans: 3,177

City: Steamboat Springs
MSA: Steamboat Springs
Zip Code: 80487
Number Seriously Underwater: 261
Pct Seriously Underwater: 4.8%
Q3 2018 Total with Loans: 5,475

City: Boulder
MSA: Boulder
Zip Code: 80302
Number Seriously Underwater: 251
Pct Seriously Underwater: 5.4%
Q3 2018 Total with Loans: 4,622

City: Fort Morgan
MSA: Fort Morgan
Zip Code: 80701
Number Seriously Underwater: 153
Pct Seriously Underwater: 5.5%
Q3 2018 Total with Loans: 2,791

City: Denver
MSA: Denver-Aurora-Lakewood
Zip Code: 80203
Number Seriously Underwater: 230
Pct Seriously Underwater: 5.7%
Q3 2018 Total with Loans: 4,026

City: Montrose
MSA: Montrose
Zip Code: 81401
Number Seriously Underwater: 239
Pct Seriously Underwater: 5.8%
Q3 2018 Total with Loans: 4,102

City: Grand Junction
MSA: Grand Junction
Zip Code: 81501
Number Seriously Underwater: 300
Pct Seriously Underwater: 6.2%
Q3 2018 Total with Loans: 4,843

City: Glenwood Springs
MSA: Glenwood Springs
Zip Code: 81601
Number Seriously Underwater: 203
Pct Seriously Underwater: 6.4%
Q3 2018 Total with Loans: 3,191

City: Englewood
MSA: Denver-Aurora-Lakewood
Zip Code: 80113
Number Seriously Underwater: 371
Pct Seriously Underwater: 7.1%
Q3 2018 Total with Loans: 5,242

City: Estes Park
MSA: Fort Collins
Zip Code: 80517
Number Seriously Underwater: 288
Pct Seriously Underwater: 7.2%
Q3 2018 Total with Loans: 3,975

City: Sterling
MSA: Sterling
Zip Code: 80751
Number Seriously Underwater: 206
Pct Seriously Underwater: 7.8%
Q3 2018 Total with Loans: 2,643

City: Durango
MSA: Durango
Zip Code: 81301
Number Seriously Underwater: 808
Pct Seriously Underwater: 9.5%
Q3 2018 Total with Loans: 8,522

City: Avon
MSA: Edwards
Zip Code: 81620
Number Seriously Underwater: 289
Pct Seriously Underwater: 10.7%
Q3 2018 Total with Loans: 2,689

City: Pueblo
MSA: Pueblo
Zip Code: 81001
Number Seriously Underwater: 544
Pct Seriously Underwater: 11.1%
Q3 2018 Total with Loans: 4,905

City: Vail
MSA: Edwards
Zip Code: 81657
Number Seriously Underwater: 491
Pct Seriously Underwater: 15.0%
Q3 2018 Total with Loans: 3,266

City: Aspen
MSA: Glenwood Springs
Zip Code: 81611
Number Seriously Underwater: 656
Pct Seriously Underwater: 19.4%
Q3 2018 Total with Loans: 3,373

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Michael Roberts began his career with Westword in 1990 as music editor. In 1999, he took on a new role, full-time media reporter, as author of a column called The Message. In 2008, he became the lead writer for Westword's news blog, The Latest Word, a position he held until January 2023. Michael continues to freelance for Westword, covering everything from business to sports and the media; he also contributes to Jazziz, a national music magazine. He holds a bachelor's degree from what is now Colorado Mesa University and master's degrees from the University of California, Los Angeles, and Northwestern University.

Contact: Michael Roberts

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