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Negative equity is looming for some home owners – but you only need to worry if you need to sell

  • Written by: Stephen Hickson, Economics Lecturer and Director Business Taught Masters Programme, University of Canterbury
Negative equity is looming for some home owners – but you only need to worry if you need to sellGetty Images

It feels like a perfect storm is building. The rising cost of living and higher interest rates are putting household budgets under stress, and falling house prices could push some home owners into negative equity.

On the one hand, the drop in house prices is a good thing as it makes housing more affordable, particularly for young...

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