ATTOM IDs Areas With Highest Concentration of ‘At-Risk’ Markets

(A view of New York. Many vulnerable markets are in the New York Metro area, ATTOM found. Image courtesy of Life of Pix/pexels.com)

ATTOM, Irvine, Calif., released a Special Housing Risk Report, highlighting that California, New Jersey/New York and Illinois are the areas with the most at-risk housing markets in the country, meaning they are more vulnerable to declines based on home affordability, underwater mortgages and other metrics.

“The housing market boom continues to gain momentum, thanks to another springtime boost. However, some markets show signs of potential instability, which suggests a mixed level of risk, particularly in certain regions that repeatedly show signs of concern,” said Rob Barber, CEO of ATTOM. “While these observations don’t indicate immediate red flags or warning signs of an impending downturn, they do highlight areas of relative risk. With the housing market still facing challenges, it’s crucial to closely monitor regions where key indicators suggest a higher likelihood of issues.”

Counties are considered more or less at risk based on the percentage of homes facing foreclosure; the portion of underwater mortgages; the percentage of average local wages needed to pay for major home ownership expenses; and unemployment data, ATTOM noted.

The three areas had the highest concentration of most-at-risk markets, including seven in the New York City area, five in the Chicago area and 12 in California–largely inland.

For New York, Kings County, Richmond County and Bronx County made the list, along with Essex, Passaic, Sussex and Union counties in the New Jersey side of the New York metro area.

In Illinois, Cook, Kendall, McHenry and Will counties were ranked high, along with nearby Lake County in Indiana.

The 12 in California were Butte, Humboldt, Solano, Shasta, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, Riverside and San Bernardino counties.

In terms of least at risk, Virginia (eight counties deemed least vulnerable), Wisconsin (eight counties deemed least vulnerable) and Tennessee (five counties deemed least vulnerable) all fared well.