47
» VISIT US ONLINE @ DSNEWS.COM
CITIES IN THE
CROSSHAIRS—IS
A HOUSING CRISIS
AHEAD?
Many American cities may be in danger
of a housing crisis, according to a study from
GOBankingRates. Using data from Zillow
and the Census Bureau's 2017 American
Community Survey, GOBankingRates
compiled a list of 175 largest U.S. cities by
the number of households, and examined
the percentage of homes with mortgage with
negative equity, mortgage delinquency rate,
homeowner vacancy rate, rental vacancy rate,
and foreclosure rates to determine which cities
may be the closest to a housing crisis.
According to Zillow, the median U.S. home
value increased by 7.2% from a year earlier,
and data from CoreLogic indicates serious
delinquency rates on home mortgages were
the lowest in more than 12 years. However, in
these cities examined by GOBankingRates,
delinquency is a rising problem. Topping the
list is Newark, New Jersey. In Newark, with a
median home value of $252,000, 27.9% of homes
are currently underwater, and according to the
study, lateness is a major issue. In Newark, 6.4%
of homes are delinquent, six times the national
average.
Taking the second spot, Detroit sees a
similar story. In the Motor City, 34.4% of
homes were found to be underwater. e
median home value in the Detroit-Warren-
Dearborn metro area is $161,300, far below the
national median of $226,300.
Other at-risk cities noted in the
GOBankingRates report include Bridgeport,
Connecticut; Baltimore; Hartford,
Connecticut; Paterson, New Jersey; Cleveland;
Fayetteville, North Carolina; Dayton, Ohio;
and Montgomery, Alabama.
e West Coast isn't represented in the
top 10 cities, despite ongoing affordability
challenges facing the region. According to
Zillow, homeownership became less affordable
across the country in 2018, while renting
became marginally more affordable.
"Finding that balance where housing costs
leave a comfortable amount of spending money
is tricky, especially when the prices of life's
non-housing essentials also vary widely by
market," said Skylar Olsen, Zillow Director of
Economic Research.
