Housing
This Is the City With the Highest Foreclosure Rate in America
Published:
Foreclosures are largely a thing of the past. They surged during the Great Recession as the housing bubble exploded. From 2005 through 2008, mortgages that should have not have been granted due to low incomes and lost jobs defaulted at astonishing rates. This triggered a collapse in home prices in a number of markets. However, the housing market in 2021 is extraordinarily healthy. Home prices continue to surge, as they have for a year. Home supply has fallen because of brisk demand. However, not every metropolitan area is free of foreclosure trouble.
The new ATTOM April 2021 U.S. Foreclosure Market Report shows that one reason foreclosures are relatively low in much of the nation now relies on special circumstances that will end. Rick Sharga, executive vice president at RealtyTrac, an ATTOM Data Solutions company commented: “Foreclosure activity continues to trend near historic lows as we enter the 14th month of the Federal Government’s foreclosure and eviction moratorium.” Foreclosures are defined as “default notices, scheduled auctions or bank repossessions.”
The ATTOM data included metros measured at two size levels. In markets with populations of over 200,000, Macon, Georgia, had the worst rate of one in every 2,334 housing units with a foreclosure filing. Provo, Utah, was second at one in every 3,295 housing units. Pensacola, Florida, was next at one in every 3,492. Cleveland’s figure was one in every 3,550. Finally, Beaumont, Texas, had one in every 3,561 housing units in foreclosure.
Among cities with populations over a million, Cleveland was at the top of the list in April. Las Vegas followed with one in every 4,838 housing units. Then, Riverside, California, had one in every 5,020 housing units in foreclosure; Jacksonville, Florida, had one in every 5,243; and Chicago had one in every 5,324.
There appears to be no ready pattern among these metro areas. Cleveland is a relatively poor city. Las Vegas has a high unemployment rate because of a COVID-19 triggered drop in tourism. Riverside is a relatively affluent metro area. Chicago, the third-largest city in America after New York City and Los Angeles, is too large and diverse to draw any trends.
What is probable is that forecloses will rise soon. The federal government moratorium will only last so long.
Click here to see which county has the most expensive homes in America.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.