negative equity


: a situation in which the amount of money that a person owes for something (such as a house or a car) is more than the thing is worth

Examples of negative equity in a Sentence

Recent Examples on the Web According to Rosenberg Research, 29% of all CRE, and 56% of office loans now have negative equity. Robert Barone, Forbes, 30 Mar. 2024 Our findings suggest that the wave of optimistic borrowers between 2021 and mid-2022 may be particularly vulnerable to such drops in expectations if paired with negative equity or job loss. Christos Makridis, Fortune, 22 Mar. 2024 Its latest annual financial report from 2021 shows negative equity of £1.6 million ($2 million). Ryan Hogg, Fortune Europe, 20 Feb. 2024 Without an exit strategy, negative equity can hurt sellers who need to move on short notice. Sydney Lake, Fortune, 12 Dec. 2023 This can result in paying more than your vehicle is worth, which leads to a situation called negative equity. Elizabeth Rivelli, Car and Driver, 20 July 2023 Another term for an upside-down car loan is negative equity. Elizabeth Rivelli, Car and Driver, 20 July 2023 How negative equity is a growing worry The new and used auto market is moving farther away from the days of shockingly low supplies on car lots that contributed to skyrocketing prices. Susan Tompor, Detroit Free Press, 20 June 2023 The Fed will soon have negative equity capital, and as operating losses continue to mount, its equity-capital deficit will grow. Paul H. Kupiec and Alex J. Pollock, WSJ, 26 Mar. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'negative equity.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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Cite this Entry

“Negative equity.” Dictionary, Merriam-Webster, Accessed 15 Apr. 2024.

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