According to Zillow Real Estate Research, 31 percent of American homes are underwater, almost equal to the overall city of Los Angeles (Other data peg the percentage lower.) But in downtown Los Angeles, in the 90014 ZIP code, an astonishing 78 percent of condos and lofts are underwater. Nearly four out of every five residents in the area roughly bounded by Sixth Street, Ninth Street, San Pedro Street and Grand Avenue own places worth far less than the loan they signed.
There are many reasons for this astonishing number. The poor economy, a lack of jobs downtown and a huge shopping spree at the height of the real estate bubble leaves most downtown owners in over their head. Read on for the astounding story from LA Weekly.
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