The U.S. housing market continues to show signs of regional vulnerability, with California, Illinois, and New Jersey topping the list of states with the most at-risk markets, according to a new report from ATTOM. These areas are experiencing affordability challenges, foreclosure activity, and economic instability, making them more susceptible to downturns.
Housing Markets Facing the Most Risk
ATTOM’s analysis found that 34 of the 50 most at-risk counties were located in California, Illinois, and New Jersey. Key regions include:
Chicago metro area – 6 counties ranked as highly vulnerable
New York City metro area – 5 counties at risk
California – 14 counties, mostly inland rather than on the Pacific coast
These regions continue to face rising costs, economic uncertainty, and high foreclosure rates, putting them at greater risk if market conditions shift.
Where Housing Markets Are Stronger
On the other end of the spectrum, Virginia, Wisconsin, and Tennessee had some of the least vulnerable housing markets. These states accounted for 22 of the 50 most resilient counties, including:
4 counties in the Washington, D.C. metro area
4 counties in the Richmond, Virginia metro area
These regions show stronger economic fundamentals, lower foreclosure rates, and better affordability, making them more stable in the face of potential market slowdowns.
What This Means for Buyers and Sellers
While ATTOM’s report identifies areas of risk, CEO Rob Barber notes that this does not mean an immediate downturn is inevitable. Instead, it highlights which markets may be more or less resilient as economic conditions fluctuate.
For buyers and sellers, timing the market remains crucial. If market conditions shift, some regions may see greater price declines, while others remain stable.
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