10 Cities in Danger of a Housing Crash This Year
With Manhattan real estateOpens a New Window. reporting its longest losing streak in 30 years, and its worst first quarter since the financial crisisOpens a New Window., according to Douglas Elliman, it’s no surprise that many cities around the country are in danger of a housing crash this year. According to a new reportOpens a New Window. released Monday, more than 40 U.S. cities are nipping at the heels of a potential housing crisis especially in “old” Northeast and Midwest cities.
To determine which areas are heading toward a housing crisis, GoBankingRates Opens a New Window.analyzed data on 175 of the largest U.S. cities.
Researchers then used key factors, including the percentage of homes with mortgages with negative equity (also known as “underwater”), meaning the home is currently worth less than the total cost of the mortgage, along with city’s mortgage delinquency rate from Zillow’s February 2019 index. Additionally, the personal finance website calculated each area’s homeowner vacancy rate and rental rate using data from the Census Bureau’s 2017 American Community Survey combined with foreclosure rates from RealtyTrac. To make the list, cities had to have rates of negative equity in excess of 8.2 percent, which is the current the U.S. national average rate of homes “underwater...
