7. Sacramento, Calif.
Homeowners with Negative Mortgages: 44.7%
Sacramento, Calif., was the sixth-worst city for underwater mortgages last quarter, but improved to seventh this quarter. The rate fell by nearly 5 percentage points, coming in at 44.7%.
Sacramento, like Miami, has a relatively large proportion of renters: half of the 155,000 occupied houses. The city has 54,000 housing units with a mortgage, while nearly 9,000 have a second mortgage.
The median household income for homeowners is $79,247.