It’s no secret that affordability is a concern almost everywhere, but according to ATTOM’s Q1 2025 Special Housing Risk Report, certain U.S. counties are showing more signs of vulnerability than others. Topping the list? California and New Jersey.
In total, 23 of the 50 most at-risk housing markets were in those two states—14 in California and 9 in New Jersey—according to the report, which considered home affordability, seriously underwater mortgages, foreclosures, and unemployment rates.
Among the most startling stats:
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Affordability Strain: In 109 of 572 counties analyzed, buyers would need to spend more than half of their annual income on the costs of buying a median-priced home.
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Most Extreme Affordability Cases:
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Kings County, NY: 109.5%
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Maui County, HI: 101.5%
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San Luis Obispo County, CA: 100.1%
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Underwater Mortgages: Nationwide, 2.8% of properties are seriously underwater. But Calcasieu Parish, LA topped the list at 14%.
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Foreclosure Rates: One in every 434 homes in Dorchester County, SC faced foreclosure, compared to the national average of one in every 1,515.
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Unemployment Extremes: Imperial County, CA had the highest unemployment at 16.6%, followed by Tulare and Merced Counties (11.4% and 11.3%).
As ATTOM CEO Rob Barber put it: “There’s no unequivocal metric that can tell you where it’s safe to buy and where it’s risky… but taken together these data points show how different parts of the country are performing.”
Riskiest Housing Markets In the U.S.
