Real estate data analytics firm Attom has studied 575 counties in the United States, and Riverside and San Bernardino Counties are among the most “at risk” for significant price declines in a potential economic downturn.
The study looked at income required to buy a typical home, percentage of homes “underwater” and the local jobless rate. Of the top 50 most “at risk” counties, California has 13 of them, with Butte County ranked highest at #15, but San Bernardino comes in at #28 with a 55% income ratio, 16.1% of homes underwater and an 8.5% unemployment rate. Meanwhile, Riverside is #33, with a 68% income ratio, 6.7% underwater and 8.4% unemployment.
According to the story in The Press Enterprise, the Federal Reserve’s aggressive tightening policy and elevated inflation are slowing the recent housing boom. An Attom spokesman said with the Fed’s actions, we’re more likely to see a recession and some housing markets are going to be quite vulnerable if that happens.