The Eight States Running Out Of Homebuyers

The following list was determined by 24/7 Wall St. using six factors: (1) vacancy rates for 2010, (2) foreclosure rates for 2010, (3) November 2010 unemployment rates, (4) change in building permits from 2006 to 2010, (5) change in population from 2005 to 2010, and (6) price reduction by major cities for 2010.

  1. Michigan: One of only two states to see a population decrease over the last five years, likely due to the depression of the car industry.  It also has the second worse unemployment rate in the country and the ninth worse home vacancy rate.
  2. Nevada: With the highest foreclosure rate and highest unemployment rate in the country, Nevada is firmly at number two on this list.  The state also experienced the nation’s highest drop in building permit request, which has in turn lead to the loss of tens of thousands of construction jobs.
  3. Arizona: Arizona has the second highest rate of foreclosure and the fifth highest rate of home vacancy in the country.  It also has three of the top five cities (Mesa, Phoenix, and Tucson) in terms of price reductions for homes in 2010.
  4. California: While the state is the largest in the country in total GDP and housing units, it also is tied for second highest unemployment rate and one of the highest foreclosure rates in the country.
  5. Illinois: The state only had a slight population growth and the fifth highest drop in the issuing of building permits.  The collpase of the industrial base in the state has damaged the economy there for quite some time.
  6. Georgia: This state makes the list thanks to the second greatest decrease in the number of building permits issued, and higher than average unemployment rate, and 53.62% increase in foreclosures.
  7. Oregon: This state is in the top ten in the country for the number of building permits, price reductions, and unemployment.
  8. Florida: About 1.1 million residents are out of work, resulting in the fourth worst unemployment rate in the country.  The state also has a high rate of home vacancy and home foreclosures.  Preceding this drop in the real estate market, Florida had one of the largest real estate booms in the country.  But many of the fancy waterfront homes and high end condominiums have never been occupied.

This information was gathered from 24/7 Wall St.

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