7 NJ Counties At Risk Of Housing Market Instability: Report

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

New Jersey counties listed among the most at-risk included: Essex, Ocean, Passaic, Sussex, Union, Camden and Gloucester.

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.

The highest foreclosure rates among the 50 counties were in New Jersey, including Cumberland County, where one in 456 properties was facing possible foreclosure, as well as Sussex County (one in 540) and Camden County (one in 565).

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.