ATTOM: California, New Jersey, Illinois Face Higher Risk of Housing Market Decline

California, New Jersey and Illinois have the highest concentrations of “at-risk” markets in the country, reported ATTOM, Irvine, Calif.

The ATTOM Special Housing Risk Report examines housing markets around the United States that are more or less vulnerable to declines based on home affordability, underwater mortgages and other measures in the fourth quarter of 2023. It found some of the biggest at-risk clusters in the New York City and Chicago areas, along with inland California. Less-vulnerable markets are spread mainly throughout the South and Midwest.

In fact, California, New Jersey and Illinois had 34 of the 50 counties considered most vulnerable to potential drop-offs, the report said. The rest were scattered around other parts of the country.

At the other end of the risk spectrum, the Midwest and South again had the most markets considered least likely to decline, including nine in Wisconsin and five in Kansas.

“Fault lines running through the foundation of the U.S. housing market continue to appear in different parts of the country, with some areas remaining more or less vulnerable than others,” ATTOM CEO Rob Barber said. “As always, this is not a warning sign for homeowners to run out and sell, or rush to buy, in any specific market. The housing market remains strong throughout most of the country despite some recent small downturns. Rather, this report again spotlights areas that appear more or less exposed to a market fall, should that start to happen, based on key measures.”