California, Illinois, Florida and New York City are the areas with the highest concentration of counties vulnerable to declines in the housing market, while less-vulnerable markets are clustered in other areas of the Northeast, Midwest and South. This is according to the latest Special Housing Risk Report published by ATTOM, which analyzed fourth-quarter gaps in affordability, underwater mortgages, foreclosures and unemployment.
Five of the most at-risk markets were in and around Chicago, four were in or near New York City, seven were scattered across Florida, and 14 were in California. Markets that appear least exposed to housing market declines are Wisconsin, Virginia, Tennessee and Pennsylvania, with four in the Washington, D.C. area and three each in the Nashville and Richmond areas.
"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 ATTOM CEO Rob Barber. "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."
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