Homes in and around New York City and Chicago are most vulnerable to price declines in a potential economic downturn, according to a report released Thursday by real estate data analytics firm Attom.
Of the 50 counties most at risk, nine are in and around New York City, six are in the Chicago metropolitan area, and 13 are spread through California.
These counties have high levels of unaffordable housing, underwater mortgages, foreclosures and unemployment. In contrast, counties least at risk — concentrated in the South and Midwest apart from Chicago — have lower such levels.
After a pandemic-related boom, the Federal Reserve's aggressive tightening policy and elevated inflation are crimping the once-booming U.S. housing market.
Rising mortgage rates have helped to dampen sales and force an increase in income needed to cover a typical home payment.
"Given how little progress has been made reducing inflation so far, the Fed's actions seem more and more likely to drive the economy into a recession, and some housing markets are going to be more vulnerable than others if that happens," said Rick Sharga, executive vice president of market intelligence at Attom.
