The Riskiest Housing Markets In America: PMI (PHOTOS)

The economy may or may not be inching its way toward a recovery, but for now the housing market is still very much in flux.

PMI, a mortgage insurance provider, recently released its quarterly report on the U.S. real estate market, and listed what it sees as the riskiest housing markets in America. Florida, as you might expect, is very well represented on the list.

Though the overall risk in 93 percent of U.S. real estate markets decreased in the fourth quarter of 2009, PMI says the below markets are certainly as high-risk as they come. For the sake of explanation, we've added background information on each metropolitan statistical area PMI cited, using data from the Bureau of Labor Statistics, foreclosure data from RealtyTrac and building permit information from the National Association of Homebuilders. (Note: in some of the MSAs below, we averaged foreclosure rates for more than one municipality.)

(For more information check out PMI's website here.)

Which market is riskiest? Which is headed for a rebound? Check out the list below:

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Naples, Florida

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Despite relatively low foreclosure rates, you may be better off planning your beachfront retirement home elsewhere. At 12.3%, the unemployment rate in the Naples MSA is more than two points higher than the national average. Sadly, less than 61% of homes are affordable for the median income, per data from the National Association of Home Builders (NAHB) and Wells Fargo. Still, 450 new building permits were awarded in March according to the NAHB, representing an increase of 105% from the year before.

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Despite relatively low foreclosure rates, you may be better off planning your beachfront retirement home elsewhere. At 12.3%, the unemployment rate in the Naples MSA is more than two points higher than the national average. Sadly, less than 61% of homes are affordable for the median income, per data from the National Association of Home Builders (NAHB) and Wells Fargo. Still, 450 new building permits were awarded in March according to the NAHB, representing an increase of 105% from the year before.

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Comments

[Dr Juan]

12:14 PM on 06/04/2010

7 in 11 in Florida and an oil spill is drifting their way in time for summer.

That could tank summer fall and winter vacation revenues and all this could tank fluorida realestate.

[4TJefferson]

12:19 PM on 05/08/2010

Seven (7) out of eleven (11) in Florida eh? That seems cruel.

[Sing Out and Slap Iron]

06:06 PM on 05/10/2010

And I live in one of them. But I have a good job (yes, I work for the government and I have seniority) and the prices are falling precipitously. There was a bit of a sales uptick just before the tax cut expired, but there is definitely a bargain to be had in the areas south of Miami.

[okkarma]

04:07 PM on 05/06/2010

Vegas is actually a bargain now. So if you buy at the foreclosure price you will be doing well. In fact, if you wanted, you could make money renting property there, they are so cheap. Some houses selling for $300k at the top of the bubble are selling for around a third of that now.

[MrBadExample]

08:32 AM on 05/06/2010

Who would lend money in markets like these?
The second home/retirement home business is on life support right now owing to the crappy economy in other places--those Boomers planning to become snowbirds are having big trouble unloading their houses in the north. And the mismatch between median income and median house price is going to have to shrink--the market still has lots of room for 'correction'.

Florida especially is a problem--the retirees don't pay much in taxes, and the high unemployment means receipts from sales taxes and property taxes are still way down. So even if one can afford to retire to Port St. Lucie, there's a question as to whether the local services can survive the budget ax.

[Sing Out and Slap Iron]

06:08 PM on 05/10/2010

Not all of us here are retirees chief. The vast majority of us work for a living just like you folks up north do.

[cabinetmaniac]

08:09 AM on 05/06/2010

They didn't even list the Space Coast of Florida.

Unemployment at around 13% by the official numbers.

Home values at less than half the peak values.

Shuttle program and Constellation being shut down resulting in thousands of layoffs.

Etc....

:-]

[Superb1]

12:51 AM on 05/06/2010

Wait a minute, they got unemployment in Sin City? DOH

[Carolab]

12:27 AM on 05/06/2010

"Resort" and vacation home markets. Every one of them.

The same people who bellyache about being underwater.

[Sing Out and Slap Iron]

06:10 PM on 05/10/2010

That's sheer ignorance Carolab. The vast majority of us folks in Florida (I'm in Miami) work just as hard as northerners do. We just don't ship our old folks off to another state when they retire.

[hottpotat0]

12:11 AM on 05/06/2010

i think Detroit or other rust belt cities like Gary IN or Flint MI are a hell of a lot worse off with true unemployment around 22% and pollution from all the years of unhindered industry-this article is a ply to get people to move to these areas to soak up inventory and create a floor so the wealthy stay wealthy-that is all

[eroq]

10:03 PM on 05/05/2010

Um, that's Miami Beach in the background. How about some accuracy here, HP?

[Superb1]

12:50 AM on 05/06/2010

fanned

[bps]

05:52 AM on 05/06/2010

Good one! I kept looking at the photo, thinking it wasn't "right". Naples has condos, but nothing so dense as in the photo.

[Albert Amato]

09:24 PM on 05/05/2010

So untrue about Naples.....high unemployment? The majority of people are retired and not looking for work......unaffordable homes for many workers there but the majority of Naples is RESORT and second home to snow birds..........better yet, stay away, as it is already too crowded in high season.

[jmacncheese]

12:38 AM on 05/06/2010

EXACTLY the same situation with Lake Havasu,

[moonflowerjewelry]

07:53 PM on 05/05/2010

Yay! We're in the top ten! Yay!
Wait.
Ouch.
Damn!

[ScreenName05]

07:24 PM on 05/05/2010

Has anyone noticed on these top or bottom lists, that the places that are most affordable or the best are always places nobody wants to move to, and the lists like this one contain mostly historically popular areas? Yes you can buy a house cheap in Iowa, but who cares? Who wants to live there? If you have lived on the California or Florida coast, you know there is a reason this property is expensive and therefore in a downturn ends up on the bottom of the list. But if there is a recovery these markets will explode, just like they always have.

[ParacelsusTheophrastus]

07:38 PM on 05/05/2010

Iowa is a great place to live. Easy to get around. Nice people. Somewhat harmed by big ag but we are working on that. In the mean time you'll help us out by watching Food Inc.

[berrycooda]

06:59 PM on 05/05/2010

Is this working up to another bail out....
PMI....Isn't that what people pay when they buy their home to insure mortgages will be paid....and how does that relate when people can't make pmts. Is this so the banks don't lose or what ???
Anyway..Freddie Mac is now asking for a 10 billion bail out.
They should take Barney Frank, Chris Dodd , Freddie Mac
and Fannie Mae, put them in a boat that is sinking and forget
to bail them out.

[Nevervotesrepublican]

07:07 PM on 05/05/2010

Just as long as you make it a big boat so that you can add Dick Cheney, Dubya and all the wingers in Congress who created this mess.

[Troubledwawa]

07:10 PM on 05/05/2010

You do bring up a valid point - if a person has to pay PMI, then they can't afford the house. The debt to income ratio is irrelevant at that point. No down payment, no house.

[Joseph Joyal]

06:36 PM on 05/05/2010

I live in Winter Haven, The building keeps going without sales and foreclosures keep out pacing sales.

[Troubledwawa]

07:02 PM on 05/05/2010

Sadly, that's an accurate description of many areas in this country right now. Additionally, with notice of defaults continuing to rise, the shadow inventory also continues to increase. We're no where near a bottom until the notice of defaults stop and the shadow inventory liquidates.

[hottpotat0]

12:07 AM on 05/06/2010

race to the bottom or they see an influx of immigrants in the near future-cause it makes no sense unless they don't want the used housing market to heat up

[diasehmai]

04:47 PM on 05/05/2010

Florida will soon have black sand beaches.

[berrycooda]

07:00 PM on 05/05/2010

Wrong....not sand beaches...black tar beaches.
Just makes more parking area.

[Albert Amato]

09:26 PM on 05/05/2010

I thought the Obama administration had this crisis in the bag? No?

[Sing Out and Slap Iron]

06:13 PM on 05/10/2010

Still cleaning up after your boy Shrub.