ATTOM Spotlights The Most Vulnerable Housing Markets – NMP Skip to main content

ATTOM Spotlights The Most Vulnerable Housing Markets

Jun 22, 2022
underwater
Associate Editor

New Jersey, Illinois, and inland California had the highest concentrations of the most at-risk markets in the first quarter.

KEY TAKEAWAYS
  • Based on home affordability, underwater mortgages, foreclosures, and unemployment, first-quarter 2022 patterns reveal that New Jersey, Illinois, and California had 34 of the 50 counties most vulnerable to potential declines.
  • The rest of the 50 counties were scattered throughout the East Coast and in the Midwest.
  • The South had the highest concentration of markets considered least vulnerable to falling housing markets. 

ATTOM released a Special Housing Risk Report highlighting county-level housing markets around the United States that are more or less vulnerable to declines, based on home affordability, unemployment, and other measures in the first quarter of 2022. 

The report shows that New Jersey, Illinois, and inland California had the highest concentrations of the most at-risk markets in the first quarter of 2022 with the biggest clusters in the New York City and Chicago areas. Most southern states were less exposed. 

Based on home affordability, underwater mortgages, foreclosures, and unemployment, first-quarter 2022 patterns reveal that New Jersey, Illinois, and California had 34 of the 50 counties most vulnerable to the potential declines. This includes eight counties in the Chicago metro area, six near New York City, and 10 sprinkled throughout northern, central, and southern California. 

The rest of the 50 counties were scattered throughout the East Coast and in the Midwest. They included three each in the Cleveland, Ohio, and Philadelphia, Pa., metro areas, plus two of Delaware’s three counties. At the other end of the risk spectrum, the South had the highest concentration of markets considered least vulnerable to falling housing markets. 

"While the housing market has been exceptionally strong over the past few years, that doesn't mean there aren't areas of potential vulnerability if economic conditions continue to weaken," said Rick Sharga, executive vice president of market intelligence at ATTOM. "Housing markets with poor affordability and relatively high rates of unemployment, underwater loans, and foreclosure activity could be at risk if we enter a recession or even face a more modest downturn."

These counties were considered more or less at risk based on percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes, and local unemployment rates. 

About the author
Associate Editor
Katie Jensen is a mortgage news reporter at NMP.
Published
Jun 22, 2022
More Buyers Expect Higher Rates. Fewer Would Wait.

Veterans United’s survey finds less willingness to hold out for lower rates, but little change in purchase timelines

Oct 22, 2026
Mortgage Rate Lock-In: More High-Rate Loans, Few Signs Of A Thaw

With 30-year rates above 7% and nearly half of outstanding loans below 4%, originators face a stubborn obstacle to rebuilding repeat-buyer pipelines

Oct 22, 2026
Investor Homebuying Slows, Small Buyers Claim Biggest Share In 15 Years

Smaller investors accounted for 66.2% of investor purchases in the first half of 2026 and relied on cash much less often than mega-investors

Oct 22, 2026
California Home Sales Drop 6.5%, Prices Keep Climbing

September’s decline leaves originators competing for fewer purchases, while rising borrowing costs and limited new listings keep affordability under pressure

Oct 20, 2026
One In Three Americans Blame Lenders For Housing Crisis Ahead Of Midterms

Voters want lower taxes, insurance costs, and mortgage rates, but 63% doubt the election will improve housing

Oct 20, 2026
Rates Above 7% Shrink Buyer Budgets In Loosening Housing Market

Realtor.com finds 66 of 99 metros favor buyers or are moving that way, while rising financing costs have cut borrowing capacity 7.2% since late August for a fixed monthly payment

Oct 19, 2026