American Family Employees: Navigating the Tides of Home Value Changes in Key States

Healthcare Provider Update: Healthcare Provider for American Family American Family Insurance offers health insurance primarily through its partnership with HealthPartners and other regional health systems, depending on specific plan availability and state regulations. They provide a range of health coverage options, including individual and family plans as part of their broader insurance portfolio. Brief on Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, significant rises in Affordable Care Act (ACA) premiums are expected in 2026, with average increases projected at around 20%. This surge is attributed to various factors, including escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate hikes from major insurers like UnitedHealthcare, which is requesting increases as high as 66.4% in certain states. Consequently, if these subsidies are not extended, many consumers could experience a staggering 75% increase in their out-of-pocket premiums, pricing out a substantial segment of middle-income families from adequate coverage. As a result, 2025 becomes a crucial year for consumers to proactively strategize to mitigate the financial impacts of skyrocketing healthcare costs. Click here to learn more

Amid fluctuating economic conditions, the U.S. housing market has experienced significant shifts.  Recent analysis by ATTOM  reveals that while some regions have seen robust increases in property values, others are experiencing steep declines, leading to scenarios where mortgages exceed the market value of properties. For American Family employees, this information is particularly relevant, as these economic trends can influence personal investment and property decisions.

Underwater mortgages are primarily observed in ten states where various economic factors, including reduced demand for fossil fuels and demographic changes, have significantly impacted property values. This phenomenon is notably severe in states tied to industrial sectors facing economic recessions, which is relevant for regions where American Family has significant operations.

ATTOM’s comprehensive study , covering over 155 million properties in the U.S. during the second quarter of 2024, highlights areas like Louisiana, Mississippi, and Kentucky with the highest rates of underwater mortgages. These issues often stem from a mix of economic downturns, natural disasters, rising unemployment, and population decline, especially in regions where industries such as oil and gas play a key economic role.

The presence of underwater loans can have considerable impacts on homeowners and the broader economic landscape of an area. It often signals broader issues, such as slow economic momentum and fewer employment opportunities, which may resonate with American Family’s community, leading to reduced property values due to declining demand.

States with the Highest Rates of Underwater Mortgages

1. Louisiana : 10.5% of home loans are severely underwater.

2. Mississippi : 6.8%.

3. Kentucky : 6.3%.

4. Arkansas : 5.4%.

5. Iowa : 5.0%.

6. North Dakota : 5.0%.

7. Nevada : 5.0%.

8. Virginia : 4.7%.

9. Illinois : 4.0%.

10. Alabama : 3.9%.

This data highlights the financial strain and challenges homeowners in these regions face. However, there are signs of potential relief. Rob Barber, CEO of ATTOM, notes an uptick in buyer demand nationwide, spurred by decreasing interest rates this summer. These conditions may help stabilize housing markets and support property values, offering some relief to those with underwater loans. This shift may also impact American Family employees considering relocation or property sales in these areas.

Featured Video

Articles you may find interesting:

The construction sector’s changes reflect notable economic transformations, particularly the move toward alternative energy sources, which has significantly impacted fossil-fuel-producing states like Louisiana, Oklahoma, and Kentucky. Additionally, demographic shifts, including migration to areas with more job opportunities, have intensified property value declines in the Midwest and South. American Family employees may want to consider these trends when planning long-term property investments.

Despite these challenges, market stabilization holds potential to support gains in property values, offering a path for homeowners managing underwater mortgages. The balance between declining and stabilizing markets emphasizes the real estate sector's complexity and its responsiveness to broader economic changes, a dynamic that American Family employees must approach thoughtfully.

Understanding these dynamics is crucial, particularly for stakeholders in the real estate sector, as they face the effects of economic shifts on property values. The situation calls for close monitoring of market trends and proactive steps to manage the effects of economic downturns on real estate—especially relevant for American Family employees involved in or considering real estate investments.

For homeowners nearing retirement, the tax implications of selling an underwater property can be substantial.  According to IRS guidelines , if a loan is forgiven in a foreclosure or short sale for less than the requested amount, the unpaid sum may be considered taxable income. However, the Mortgage Forgiveness Debt Relief Act offers a tax exemption for some homeowners by excluding this forgiven debt from their taxes if it was their primary residence. This measure lasts until the end of 2025 and is particularly important for those in states with high rates of underwater mortgages, including American Family employees planning their retirement strategies.

Navigating the property market in these ten states with high underwater mortgage rates is like sailing through turbulent seas. Much like a seasoned captain, one must understand the complex interplay of economic and demographic changes affecting property values. In areas like Louisiana, Mississippi, and Kentucky, where shifts in key industries have transformed the economic landscape, the challenge is to steer toward a financially stable outcome. Careful management can help American Family employees maintain stability in retirement despite challenging market conditions.