Biggest Prospective Housing Bubbles

The burst housing bubble isn’t even fully behind the country and already there are areas showing signs that another one may be ahead, according to Bloomberg.

While there are plenty of housing markets poised to really take off, there are some cities where foreclosures are still on the rise, increasing month over month. In January, Canton-Massillon, Ohio reported a 120% increase in housing foreclosures over December.

In general Ohio’s housing markets aren’t doing great — among the top 14 housing markets with the most foreclosures in May, five were located in Ohio. Meanwhile, Florida had five housing markets in the top 10 cities with the most foreclosures.

Bloomberg’s latest ranking looked at metro areas with year-over-year increases in unemployment and median housing list prices, which could be indicative of a bubble ahead. A score was calculated by averaging the percentage ranks of both those criteria.

While Wheeling, W.V.-Ohio, had the largest change in median housing list price (25.4%), it didn’t make the top 10 because its unemployment rate only changed 0.1%.

The top two cities on the list have dire outlooks: one has an astronomical unemployment rate and the other has seen a huge increase in the median housing list price.

(The unemployment rate used is from April 2013, while the increase is from April 2012 to April 2013. Change in median housing is for list price.)

10. Dover, Del.

Downtown. Tim Kiser | Wikipedia.org

Score: 55.3

Unemployment rate: 7.7%

Unemployment increase: 0.2%

Change in median housing: 11%

9. Fargo, N.D.-Minn.

Score: 55.4

Unemployment rate: 3.8%

Unemployment increase: 0.3%

Change in median housing: 5.4%

8. Chicago-Joliet-Naperville, Ill.-Ind.-Wis.

Copyright The Windy Pixel

Score: 57.1

Unemployment rate: 9.6%

Unemployment increase: 0.8%

Change in median housing: 3.4%

5. (tie) New Bedford, Mass.

New Bedford Bay.

Score: 58.9

Unemployment rate: 10.4%

Unemployment increase: 0.2%

Change in median housing: 8.6%

5. (tie) Lafayette, Ind.

Downtown at Riehle Plaza. Quinn S. Thomson | Wikipedia.org

Score: 58.9

Unemployment rate: 8%

Unemployment increase: 0.6%

Change in median housing: 5%

5. (tie) Fort Smith, Ark.-Okla.

Downtown. Tom Holland | Wikipedia.org

Score: 58.9

Unemployment rate: 7.7%

Unemployment increase: 0.2%

Change in median housing: 12.9%

4. Racine, Wis.

Downtown. Copyright Jeremy Atherton, 2007

Score: 60.7

Unemployment rate: 9.1%

Unemployment increase: 0.7%

Change in median housing: 4.7%

3. South Bend-Mishawaka, Ind.-Minn.

East Race. Michael J. Lane | Wikipedia.org

Score: 69.6

Unemployment rate: 9.4%

Unemployment increase: 0.2%

Change in median housing: 14.1%

2. Elmira, N.Y.

Score: 83.9%

Unemployment rate: 9%

Unemployment increase: 0.6%

Change in median housing: 20%

1. Yuma, Ariz.

Quartermaster’s Depot State Historic Park

Score: 85.7

Unemployment rate: 30%

Unemployment increase: 3.1%

Change in median housing: 10.7%

Yuma has, by far, the highest unemployment rate on the list and the largest increase in unemployment over a year ago.