5. Fayetteville, NC
> Pct. homes underwater: 4.56%
> 12-Month home price change: +1.14%
> Unemployment: 6.6%
> Homes built since 2000: 21.6%
The expenses that come with owning a home include mortgage and insurance payments, real estate taxes, and heating costs. Nationwide, nearly 30% of homeowners pay more than 2,000 or more on such expenses. In Fayetteville, North Carolina, just 10% pay that much. Unemployment in the region is relatively high, at 10.4%, but low costs and rising home values in the region help keep more than 95% of the region’s mortgages above water.
4. Buffalo-Niagara Falls, NY
> Pct. homes underwater: 4.22%
> 12-Month home price change: 3.92%
> Unemployment: 7.3%
> Homes built since 2000: 5.3%
Buffalo home values have been declining for years as businesses have slowly left the region. However, the housing market is beginning to pick up in the region. As reported in USA Today, the Buffalo housing market remained sluggish during the housing bubble, and so it didn’t suffer from the collapse most of the country experienced. In the article, Bonnie Clement, a local realtor, explains: “We’ve never had a market that has gone way over the top, and, therefore, we don’t have a market that’s now falling down.” In the past 12 month period, home values have increased by nearly 4%.
3. Albany-Schenectady-Troy, NY
> Pct. homes underwater: 4.01%
> 12-Month home price change: -0.90%
> Unemployment: 6.7%
> Homes built since 2000: 9.6%
Just 4.01% of mortgaged homes in the Albany region are worth less than their mortgages. Like Buffalo, the region didn’t experience much of a housing boom with the rest of the nation, and so the market hasn’t suffered as much in the aftermath. Only 9.6% of currently standing homes were built in the past ten years, compared to a national average of 14.9%. Unemployment in the region is just 6.7%, and just 2.58% of home sales were made because owners could no longer afford upkeep.
2. El Paso, TX
> Pct. homes underwater: 3.89%
> 12-Month home price change: +5.73%
> Unemployment: 10.6%
> Homes built since 2000: 19.6%
In the past 12 months, home prices in El Paso have increased by 5.73%, while prices nationwide have dropped by 4.4%. The housing market in the region, according to the El Paso Times, is exceedingly tight. Just 8.2% of homes are vacant, compared to a national rate of 13.1%. According to the article, El Paso is seeing “Historically low home mortgage rates, including a drop below 4 percent for the first time ever early this month…” This has helped increase home value in the area.
1. Rochester, NY
> Pct. homes underwater: 3.41%
> 12-Month home price change: +0.25%
> Unemployment: 7.1%
> Homes built since 2000: 7.2%
Just 3.41% of mortgages in the Rochester, NY region are underwater mortgages. This is the lowest rate in the country. The story for Rochester is very much the same as its regional neighbors Albany and Buffalo. The housing boom failed to reach the area, and so very few new homes were built. In the U.S., 8.8% of all homes were built between 2000 and 2005. In Rochester, just 4.1% of current homes were built during that period. Foreclosure rates have been extremely low in the region. In the past recorded 12-month period, just 2.89% of home sales were of formerly foreclosed-upon homes.
-Michael B. Sauter