ATTOM’s newly released Q2 2022 Special Housing Risk Report shows that New Jersey, Illinois and inland California continued to have the highest concentrations of the most-at-risk markets in the second quarter. According to the report, the biggest clusters were in the New York City and Chicago areas, while the Southern and midwestern states remained less exposed.
ATTOM’s housing risk report spotlights county-level housing markets around the U.S. that are more or less vulnerable to declines, based on home affordability, unemployment and other measures. The Q2 2022 report looked at counties that were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes, and local unemployment rates.
The conclusions notated in the report were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM, while unemployment rates came from federal government data. Rankings were then based on a combination of those four categories in 575 counties around the U.S. with sufficient data in Q2 2022. Counties were then ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks.
According to the report, New Jersey, Illinois and California had 27 of the 50 counties most vulnerable to potential declines, with the 50 most at-risk including seven in and around New York City, eight in the Chicago metro, and eight spread through northern, central and southern California. The report stated the rest of the top 50 counties were scattered across the U.S., including three in the Cleveland, OH, metro area and all three counties in Delaware. Meanwhile, at the other end of the risk spectrum, less exposed markets were located mainly across southern, northeastern and midwestern states.
In this post, we dig into the data behind the ATTOM Q2 2022 Special Housing Risk Report to reveal the other top states with the most counties vulnerable to housing market declines. Those states with the most at-risk counties among the top 50 most vulnerable include: Illinois (11 counties); New Jersey (8 counties); California (8 counties) and Ohio (4 counties).
Also, in this post, we dig into the data behind the ATTOM Q2 2022 Special Housing Risk Report to reveal the top states with the most counties that are least vulnerable to housing market declines. Those states with the most counties among the bottom 50 least-at-risk include: New Hampshire (4 counties), New York (4 counties) and Wisconsin (4 counties).
ATTOM’s latest report noted that major home ownership costs on median-priced single-family homes consumed more than one-third of average local wages in 27 of the 50 counties that were most vulnerable to market problems in Q2 2022. The report also noted that at least 7 percent of residential mortgages were underwater in Q2 2022 in 33 of the 50 most at-risk counties, while nationwide, 5.9 percent of mortgages fell into that category. Also, more than one in 1,000 residential properties faced a foreclosure action in Q2 2022 in 42 of the 50 most at-risk counties; while nationwide, one in 1,559 homes were in that position.
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