Many areas of the U.S. are experiencing economic challenges, with a new report from property data provider ATTOM showing the housing markets that are most at risk of a downturn. The Special Housing Risk Report shows that two-thirds of the 50 most at-risk counties are in California, Illinois, the New York City area, and parts of Florida. On the other end of the spectrum, the least vulnerable markets are in states that include Wisconsin, Virginia, Tennessee, and Pennsylvania—housing markets predominantly surrounding Washington, D.C., Nashville, Tenn., and Richmond, Va.
The ongoing rise in home prices around much of the nation has outpaced most wage gains around the country to varying degrees. That has led to home ownership costs consuming more than triple the portion of average wages in some parts of the country compared to others. Similar disparities can be found in several other measures: unemployment rates, the level of homeowners facing foreclosure and the portion owing more on their mortgages than their homes are worth.
“Local housing markets fluctuate in and out of the lists of areas more or less exposed to declines from quarter to quarter, but some regions consistently rank among the most vulnerable due to significant gaps in key market indicators,” said Rob Barber, CEO at ATTOM. “This report isn’t meant to raise red flags or predict endless gains—it simply highlights counties experiencing more or less pressure that could influence home values, foreclosures, or homeowner equity.” Read more
