The Eight States Running Out Of Homebuyers

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6. Georgia
> 2010 Foreclosures: 3.25% (6th Worst)
> Unemployment: 10% (9th Worst)
> Decrease in Building Permits 2006 to 2010: -82.29% (2nd Worst)

The number of building permits issued in 2006 in Georgia was 92,541.  In 2010 that number dropped to 16,391.  This is the second greatest decrease in the nation during that time. The state’s unemployment rate, at 10%, is above the national average of 9.4%.  Also, in 2010, there were 130,966 foreclosures in Georgia, 3.25% of the state’s properties.  This is an increase of 53.62% since 2008.


7. Oregon
> Unemployment: 10.6% (Tied for 5th Worst)
> Decrease in Building Permits 2006 to 2010: -74.08% (7th Worst)
> # of Listings With Price Reductions (Portland): 35% (Tied for 8th Worst Among 50 Largest US Cities)

Oregon’s real estate market has suffered the double blow of a sharp drop in both building permits and price reductions on existing homes. Unemployment is 10.6%, the fifth worst rate in the country.  The number of new building permits decreased by 74% from 2006 to 2010.  In December 2010, 35% of listings in Portland, the state’s largest city, had price reductions.

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8. Florida
> Vacancy Rate: 21.03% (2nd Worst)
> 2010 Foreclosures: 5.51% (3rd Worst)
> Decrease in Building Permits 2006 to 2010: -81.37% (3rd Worst)

Unemployment in Florida is 12%, the fourth worst in the country.  Approximately 1.1 million residents are out of work.  Statistics show that 21.03% of the state’s housing units are vacant.  Furthermore, 5.51% of homes have been foreclosed upon.  Florida was among five states that had the largest real estate booms from 2000 to 2006. Residential prices in some waterfront areas like Miami and Palm Beach rose by much more than double during that period. New home and condominium construction soared. Many of those residences have never been occupied and are still part of the inventory of homes for sale.

Sources:
1) Vacancy rates for 2010 – American Community Survey (Census Bureau)
2) Foreclosure rates for 2010 – RealtyTrac
3) November 2010 unemployment rates – Bureau of Labor Statistics
4) Change in building permits from 2006 to 2010 – Census Bureau
5) Change in population from 2005 to 2010 – Census Bureau
6) Price reduction by cities for 2010 – Trulia

Douglas A. McIntyre, Michael B. Sauter, and Charles B. Stockdale