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Neighborhoods and Housing Markets Regional Discussion

Explore solutions for high foreclosure rates, falling home values, and rising unemployment in the housing market. Learn about loan modifications, affordable rentals, land banks, and more to address these issues effectively.

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Neighborhoods and Housing Markets Regional Discussion

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  1. Neighborhoods and Housing Markets Regional Discussion January 23, 2012 Robin Newberger Community Development and Policy Studies Department Federal Reserve Bank of Chicago

  2. Issues/Challenges Potential Solutions • High rates of foreclosure • Rising starts and falling transitions • Falling home values • Negative equity/drop in home financing • Affordability • Rising REO and vacancy rates • High unemployment • Loan modifications • Temporary financial support to homeowners • Expansion of affordable rentals • Including from REO inventory • Land Banks • Improvement of labor market Housing Market Issues

  3. Illinois Foreclosures County Foreclosure Inventory High Rates of Foreclosure Source: MBA and LPS

  4. Estimated Foreclosure Start and Transition Rates

  5. 2006 2011 Foreclosure Inventory Rates

  6. Falling Home Values Source: OFHEO

  7. Negative Equity Source: Zillow

  8. Home Mortgage Lending Home Purchase Refinancing Percent Change in Mortgage Lending (2006-2010) Source: HMDA

  9. Limited Numbers of Modifications

  10. Real Estate Owned (REOs)(percent of all current and non-current loans) Source: LPS

  11. Neighborhood Vacancy Rates Source: Census 2010

  12. Unemployment and Foreclosures Source: IDES LAUS

  13. Rising foreclosure rates across all counties • Falling transition rates • Falling home values • Limited number of modifications • Some communities more economically frail than others • Extent of “underwater” varies with drop in values • Home financing more available in some places • Impact of unemployment on housing market Regional and Local Comparison

  14. Issues/Challenges Potential Solutions • High rates of foreclosure • Rising starts and falling transitions • Falling home values • Negative equity/drop in home financing • Rising REO and vacancy rates • High unemployment • Loan modifications • Temporary financial support to homeowners • Expansion of affordable rentals • Including from REO inventory • Land Banks • Improvement of labor market Housing Market Issues

  15. Thank you

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