Bloomberg News reports that the homes in and around Chicago and New York City are susceptible to a drop in prices in an impending economic meltdown. This was released in a report on Thursday as per Attom, a firm engaged in real estate data analytics.
Out of the 50 most vulnerable counties, nine are near New York City, and there are 13 across California counties and 6 in the Chicago metropolitan area. The counties that are mentioned above are the ones that harbor higher levels of unemployment, foreclosures, unaffordable housing, and underwater mortgages. In comparison to that, the counties at a minimum risk include those in the Southern and Midwest, aside from Chicago, which has lower levels.
Following a pandemic-related boom, the aggressive tightening policy of the Federal Reserve, as well as elevated inflation, are paralyzing the US housing market that was once booming. Escalating mortgage rates have aided in dampening sales and led to a surge in income required for a typical home payment.
Most Vulnerable Counties in New York
Some of the most vulnerable counties in New York are Richmond and Kings counties which cover Staten Island and Brooklyn. Seven counties in the suburbs include Ocean, Passaic, Essex, Bergen, Rockland, Union, and Sussex. Manhattan or New York County is at the 52nd tank out of the 575 that underwent analysis.
The seventh most vulnerable and at risk include Cook County, which holds Chicago and is the lone with a population of 1 million at least that ranks amongst the top 25.
Bloomberg News reports that those counties that have a minimum population of 500,000, the ones that were regarded as the safest among 50 are Washington’s King County, which encompasses Seattle, Travis County of Texas, which includes Austin, Wake County in North Carolina, Salt Lake in Utah, and Cobb County in Georgia, as per reports.
The report weighed the risks that the housing market has been undergoing based on the number of homes facing foreclosure.
