An analysis of residential foreclosure, underwater property reports, and home affordability on a county level identified the Northeast and the Florida housing markets as the most vulnerable to economic impact. The west and midwest were ranked as a lower risk.
A combination of three identifiers were considered when determining risk: the percentage of properties receiving a foreclosure notice or properties that were considered underwater in the fourth quarter of 2019, and the percentage of local wages required to pay for major homeownership expenses.
New Jersey had 14 counties in the top 50 most vulnerable. Florida had 10 that were concentrated in the north and center of the state. California had only one.
“‘As we head into the spring homebuying season, the next few months will reveal how severe the impact will be,’ Teta said.”