Buyers beware: These 5 cities are in danger of a housing crash this year
More than 10 years after the financial recession and the bursting of the housing bubble, another economic crisis could be looming on the horizon in the U.S.
According to a study published on Tuesday by GoBankingRates, there are at least 40 American cities in danger of another housing crisis.
That’s based on the percentage of mortgages that have negative equity, meaning the home is ultimately worth less than the total cost of the mortgage, in addition to vacancy, delinquency and foreclosure rates.
5. Hartford, Connecticut
Hartford’s homeowner vacancy — at 4.3 percent — is more than twice the national average. It also has a high amount of rental vacancies, with 9.2 percent of units remaining unoccupied. The median home value worth in Hartford is about $130,900; roughly 22.4 percent of the mortgages are underwater.
Hartford is the capital of the U.S. state of Connecticut. Hartford is known for its attractive architectural styles and being the Insurance capital of the United States.
4. Baltimore
The Maryland city — recently lambasted by President Trump (in what some described as a racist attack) as “rodent and rat infested” — has the seventh-highest rate for negativity equity rates for mortgages, at 26.5 percent. Baltimore also has a high homeowner vacancy rate, with 4.4 percent of properties sitting empty. The median home value is $119,200.
Aerial of Baltimore City with the Patapsco River and waterfront buildings. Harbor East and Fells Point neighborhoods is shown on the left and the Tide Point neighborhood is shown on the right.
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3. Bridgeport, Connecticut
With a median home value of $176,200, roughly 26.9 percent of homes are worth less than the cost of their mortgage. That’s the fifth-worst negative equity rate in the study. Plus, the city’s high delinquency and foreclosure rates are deterring potential homeowners from relocating to Connecticut’s largest city.
Bridgeport is a historic seaport city in the U.S. state of Connecticut. The largest city in the state, it is located in Fairfield County
2. Detroit
The area’s median home value — $161,300 — is well below the national average of $226,300. A whopping 33.4 percent of those homes have negative equity, the highest of homes underwater in the study.
Detroit, Michigan, USA - streets of east side Detroit.
1. Newark, New Jersey
New Jersey’s biggest city has high vacancy rates for both houses and rentals, at 5.2 percent and 9.5 percent, respectively. To compare, the national average is 1.7 percent for homes and 6.1 percent for rentals. Plus, the city also struggles with late mortgage payments; almost 6.4 percent of homes are delinquent — six times the national rate.
Newark cityscape refection along the banks of the Passaic River. Newark is the largest city in New Jersey. Newark is one of largest rail and air hubs in the nation. Newark is known for its glamorous performing arts venues, premium outlet mall, museum