10 Midwest Cities That Could Be Headed for a Housing Crisis

10 Midwest Cities That Could Be Headed for a Housing Crisis

  • Homes for sale that have been foreclosed: 70.02%
  • Percentage of mortgages 90 days delinquent: 0.7%

Dayton takes the No. 1 spot because all of its data points to a downward trend. The vacancy rate for renters is at 6.1%, and for homeowners it’s 3.6%, second highest on the list.

Additionally, 843 out of 1204 homes for sale have been foreclosed, and more may be headed that way, with high rates of delinquency.

More From GOBankingRates

Methodology: In order to find the Midwest cities that could be poised for a housing crisis, GOBankingRates looked at the largest 200 cities in terms of total housing units across the following factors: (1) percent of mortgages 30-89 days delinquent by MSA as sourced from the Consumer Financial Protection Bureau; (2) percent of mortgages 90-plus days delinquent by MSA as sourced from the Consumer Protection Bureau; (3) homeowner vacancy rate as sourced from the 2020 American Community Survey; and (4) rental vacancy rate as sourced from the 2020 American Community Survey. These four factors were then scored and combined with the highest score indicating the city most likely to be poised for a housing crisis. Factors (1) and (2) were weighted 2x and factor (4) was weighted 0.5x. The 100 cities most poised for a housing crisis were moved onto the next round of scoring. These 100 cities were then re-ranked and scored on the four factors above as well as (5) foreclosure rate as sourced from RealtyTrac. These five factors were scored and combined with the highest score indicating the city most likely to be poised for a housing crisis. For this second round of scoring, factors (1) and (2) were weighted 2x, factor (4) was weighted 0.5x, and factor (5) was weighted 1.5x. GOBankingRates then isolated those 10 cities in the Midwest with the highest scores for final rankings. All data was collected on and up to date as of May 23, 2022 and rankings were finalized on October 27, 2022.

.

Leave a Comment

Your email address will not be published. Required fields are marked *