5 Suburban Chicago Counties At Risk Of Housing Market Decline: Report

Illinois is among three states facing a particularly elevated risk of housing market decline, according to a report released this week by data curator ATTOM based on several measures from the fourth quarter of 2023.

The report shows that Illinois, along with California and New Jersey, had some of the highest concentrations of at-risk markets nationwide, with the three states accounting for 34 of the 50 counties considered most vulnerable to potential market drop-offs.

Those 50 counties include five in the greater Chicago region, six in and around New York City and 14 in inland California. At the other end of the spectrum, the greater Midwest and the South had the highest number of markets considered least likely to decline, according to ATTOM.

Illinois counties listed among the most at-risk include DeKalb, Kane, Lake, McHenry and Will counties in the Chicago area, as well as St. Clair and Madison counties outside St. Louis.

Risk was assessed based on the percentage of homes facing possible foreclosure, the portion with mortgage balances exceeding estimated property values, the percentage of average wages required to pay for major homeowner expenses on median-priced houses and unemployment rates.

Major homeownership costs — such as mortgage payments, property taxes and insurance — on median-priced houses consumed over a third of average wages in 43 of the 50 counties considered most vulnerable, according to ATTOM.