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NYC-area homeowners among the most vulnerable to foreclosure in the US: study

By
Ariel Zilber
Published Feb. 4, 2022
Updated Feb. 4, 2022, 10:53 a.m. ET

Homeowners in the New York City metropolitan area are among the mšŸ§øost vulnerable to foreclosure nationwide as middle-class wage earners struggle to keep up with surging housing costs, according to a report.

Home valuations that soared during the coronavirus pandemic coupled wšŸŒith the rise of mortgage rates have left average workers struggling to make ends meet.

A study by Attom found that the New York area and Chicago were home to eight of the most 50 at-risk counties where the average wage earner spends between 32% and 45% of their income on housišŸŒŸng.

The median home pricź§‘e of the 10 most vulnerable counties ranged from $210,000 to $480,000, accordź¦¬ing to the study, which was cited by .

Seven of the most vulnerable counties were in California while a few more were scattered throughout the Philadelphia region and Delaā™”ware, according to Attom.

Sussex County in New Jersey was ranked the mostź¦¬ vulnerable cluster in the entire country while nearby Warren, Passaic, Essex and Hunterdon counties ranked in the top 10.

In Sussex, one ļ·½of every 709 homes is in foreclosure ā€” the highest rate with the exception šŸ¬of Cuyahoga County in Ohio, Saint Clair County in Missouri, and Camden County in New Jersey.

JERSEY CITY, NJ - AUGUST 9: A woman runs past the house in the suburban New Jersey neighborhood of Port Liberte on August 9, 2020 in Jersey City, New Jersey. (Photo by Gary Hershorn/Getty Images)
Sussex County, New Jersey, is considered the most vulnerable county to pandemic-era fluctuations in the housing market, according to a recent study. Getty Images

Rockland County ranked 20th on the list.

With the exception of California, the western UšŸ„‚nited States is home to the counties considered least vulnerable to COVID-era flušŸ§øctuations in the housing market.

“The virus remains a potent threat to the broader economy and the housing market,” said Todd Teta, chief product officer at Attom.

“No immediate warning signs hang over any one part of the country, but pockets are more vulnerable to the market taking a turn for the worse.”

Mortgage rates for the typical 30-year loan have climbed to their steepest levels since early 2020 as the housing market looks to expected Federal Reserve rate hikes.

The average rate on the benchmark 30-year fixed-rate home loan was 3.55% in the week ending on Thursday ā€” down from 3.56% average the week prior week, accordšŸ”œing to data from mortgage giant FšŸ’®reddie Mac.