Published by FOX Business | September 16, 2022
Housing markets in the New York City and Chicago areas, in particular, were most vulnerable
New Jersey, Illinois and inland California have the highest concentrations of the housing markets that are most vulnerable in an economic downturn due to high unemployment rates and low affordability, according to a recent report from real estate data firm ATTOM.
Markets in the New York City and Chicago areas, in particular, were most vulnerable, according to ATTOM’s Special Housing Risk Report.
The report highlights the relative vulnerability of counties nationwide in an economic downturn.
It doesn’t suggest “that markets with a relatively high-risk rating are in danger of some sort of imminent housing market catastrophe,” Rick Sharga, ATTOM executive vice president of market intelligence, told FOX Business.
However, the housing market has cooled so rapidly in recent months that some economists from the National Association of Realtors think the industry has tumbled into a recession.
Homebuilders’ sentiment about the industry plunged to the lowest level in two years, and buyers are retreating from the market as they cancel home sales at the fastest pace since 2020 and builders rethink construction.
“We’re witnessing a housing recession in terms of declining home sales and home building.”
–Lawrence Yun, chief economist for the National Association of Realtors
ATTOM’s report, based on gaps in home affordability, underwater mortgages, foreclosures and unemployment during the second quarter, showed that 33 of the 50 counties most vulnerable to potential declines were located in New Jersey, Illinois and California.
Nine of the top 50 most-at-risk markets were around the New York City area, including Kings and Richmond counties, which cover Brooklyn and Staten Island. Six were in the Chicago metropolitan area, including Cook, Kane, Kendall and McHenry counties, according to the data.
