For homeowners and buyers, this means navigating a financial tightrope as affordability, job security, and home values collide.
What Makes a Housing Market “Risky”?
It’s not just about home prices dipping. ATTOM’s analysis looks at four critical factors that determine housing market vulnerability:
✅ Affordability – How much of your income goes to mortgage, taxes, and insurance? In some counties, it’s more than 50% of income—a major red flag.
✅ Underwater Mortgages – Homeowners owing 25% more than their home’s value are trapped financially. Louisiana tops this list.
✅ Foreclosure Rates – When payments stop, foreclosures rise. Some counties are seeing 1 in every 355 homes in foreclosure.
✅ Unemployment – No job, no mortgage payments. California’s Imperial County is at a staggering 19% unemployment.
When these factors stack up, the risk skyrockets.
The 4 States to Watch Closely
1. California: The Golden State’s Gilded Cage
- 14 counties rank among the 50 riskiest markets.
- Housing costs in some areas exceed annual wages—unsustainable for most families.
- Unemployment in Imperial County: 19%.
- Wildfire-hit regions like Humboldt and Butte face added instability.
2. Florida: Sunshine State, Stormy Market
- 7 counties make the high-risk list.
- Affordability crisis worsens as wages lag behind soaring home prices.
- Charlotte County: 1 in every 372 homes in foreclosure.
- Add hurricane risk and rising insurance costs, and the pressure mounts.
3. Louisiana: The Bayou State’s Deepwater Woes
- 4 counties rank among the riskiest.
- 7 of the top 10 counties for underwater mortgages are in Louisiana.
- Rapides Parish: 17.3% of homes underwater—a financial trap for thousands.
4. New Jersey: The Garden State’s Growing Pains
- 5 counties on the high-risk list.
- Sky-high property taxes and cost of living strain budgets.
- Economic slowdowns in nearby metro areas amplify the risk.
What Does This Mean for Homebuyers and Investors?
- If you own in these states: Monitor your equity and refinancing options.
- If you’re buying: Factor in job stability, insurance costs, and local foreclosure trends.
- If you’re investing: Diversify and avoid over-leveraging in high-risk counties.
Bottom Line
The housing market in 2025 is a tale of two realities: some regions are thriving, while others are teetering on the edge. Whether you’re buying, selling, or refinancing, knowledge is your best defense.
📞 Contact Lendworth USA today to explore smart mortgage solutions and protect your financial future.
✅ Stay informed. Stay prepared. Stay ahead.