Home values are falling and negative equity is rising in parts of the country heavily dependent on the energy and oil industries.
Zillow senior economist Aaron Terrazas notes that home values declined in five of the six U.S. metros with the highest dependence on energy-industry employment, and that negative equity increased in six metro areas in the U.S. It continues to decline in most U.S. markets. Terrazas writes:
The six metros nationwide where negative equity increased year-over-year had a median mining-industry share of total employment in 2014 of 3.4 percent and a median number of mining-industry employees of 1,500 (figure 1). By contrast, metros where negative equity declined from a year earlier had a median share of mining employees in the total workforce of just 0.2 percent and a median number of mining industry employees of about 100.