According to new data posted last week by Zillow, 22.2 percent of owner-occupant homes in the Denver area have negative equity during the third quarter of 2012.
On average, that 22.2 percent of owners are underwater by 35 percent, or 69,500 dollars.
Nationwide, 28.2 percent of owner-occupants were underwater, according to Zillow, and of that 28.2 percent, the owners were underwater by an average of 42.5 percent, or 73,100 dollars. In other words, Colorado's rate of negative equity is less than that of the nation overall, which is not surprising.
Within Colorado, the metropolitan counties with the highest rates of negative equity were Weld, Mesa, Pueblo and Adams. The counties with the lowest rates were Douglas, Jefferson, Broomfield, Boulder and Larimer.
As expected, the areas with the highest rates of underwater mortgages tend to be those counties that were hardest hit by foreclosures and large amounts of new home construction: Weld, Adams and Pueblo. Weld county, is still experiencing high foreclosure rates, which will drive up negative equity rates. Counties with in-demand mountain property and low unemployment rates show lower rates of negative equity.
See here for interactive maps.