Cities with the Most Abandoned Homes
Cities with the most abandoned homes
July 15, 2013
Wall St Cheat Sheet - One in five homes in the foreclosure process stands
vacant after being abandoned by owners. While the housing market is on
the mend, some cities still struggle as they wait for thousands of homes
to complete the process.
Many of the cities with the most homes in foreclosure that are abandoned were among the hardest hit during the housing crisis. While there are exceptions, “these are areas where a big home price bubble popped,” RealtyTrac Vice President Daren Blomquist told 24/7 Wall St. Indeed, home prices fell by more than the national average during the housing crisis in six of the 10 cities. In Lakeland and Las Vegas, prices fell by more than 40% in that time, compared to a national decline of just 20.8%.
The amount of time it takes for the foreclosure process to complete in some of these cities may, as Blomquist explained, be a major factor in how many residents decide to give up on their properties. Several of these cities are in states with long average foreclosure times. In Florida, which has two cities on this list, the average foreclosure took 893 days to complete, the third longest time in the country.
While some of these cities have shorter-than-average foreclosure processing time, recent legislation may have encouraged homeowners to give up. Atlanta is located in Georgia, which has the seventh shortest average foreclosure time of 199 days.
“But that’s up 26% from a year ago,” explained Blomquist. These changing rules may be leading homeowners to give up on their homes, he added.24/7 Wall St. reviewed the 10 metropolitan areas with the highest vacancy rate among homes in foreclosure, based on data provided by RealtyTrac for the 101 most populous metropolitan areas. RealtyTrac also provided on a metropolitan statistical area (MSA) level median home price for the total number of housing units in the area, population, institutional purchases information and foreclosures for these areas, all of which are for most recent available period. They also provided average time to foreclose on a state level, as of the first quarter of 2013. We also reviewed long-term home price changes through the fourth quarter of 2012 from the Corelogic Case-Shiller Home Price Index.
These are the cities with the most abandoned homes.
5. Wichita, Kan.
> Pct. foreclosures vacated: 30.4%
> Total vacated homes: 90
> Median home price: $140,000 (43rd lowest)
Wichita stands out among the metro areas on this list. Based of the most recently available data, 30.4% of foreclosed homes in Wichita were abandoned. According to RealtyTrac’s Blomquist, Wichita is an outlier. Home prices in the area did not decline considerably during the recession, falling just 0.4% in the five years ending with the fourth quarter of 2012. The area also had less than 300 total homes in foreclosure at last count, fewer than all but five of the nation’s largest metro areas.
4. Birmingham-Hoover, Ala.
> Pct. foreclosures vacated: 30.6%
> Total vacated homes: 375
> Median home price: $155,000 (44th highest)
The Birmingham area was not hit as hard during much of the recession as the rest of the United States. Home prices fell by just 8.8% between late 2007 and late 2012, well below the 20.8% decline nationwide in that time. In the more recent years, Birmingham’s housing market reversed its trend. Between late 2009 and late 2012, the area’s home prices dropped 5.5%, while nationwide home prices fell by just 0.6%. Many homeowners likely made the choice to vacate quickly once the foreclosure process had begun. During the first quarter of 2013, it took just 186 days, on average, to foreclose a home in Alabama, less than the average time required in all but four other states.
3. St. Louis, Mo.-Ill.
> Pct. foreclosures vacated: 31.0%
> Total vacated homes: 1,581
> Median home price: $135,000 (38th lowest)
As of the most recent count, the St. Louis metro area had more than 5,000 homes in foreclosure, with more than 1,500 of these sitting vacant. During the recession, home prices in St. Louis did not slide as much as they did in many other areas where foreclosures and vacated properties are abundant. Home prices declined by 11.4%, versus 20.8% nationwide, between the fourth quarter of 2007 and the end of last year. Still, home prices in St. Louis did not have as far to decline compared to other large cities. According to RealtyTrac, the median home price in the area was just $135,000 in April.
2. Jacksonville, Fla.
> Pct. foreclosures vacated: 31.3%
> Total vacated homes: 5,475
> Median home price: $142,099 (46th lowest)
Jacksonville area home prices dropped by 32.4% between the fourth quarters of 2007 and 2012, one of the larger drops in the nation during that time. But even as home prices began to rise in 2012, many residents still found themselves unable to afford or sell their homes. While the number of foreclosure filings in the majority of large metro areas fell from the year before during the first quarter of 2013, in Jacksonville it jumped 17.3%. According to the most recently available data, there were nearly 17,500 homes in foreclosure in the area, of which nearly 5,500 were empty. Possibly contributing to the rising number of vacant homes is that the average foreclosure takes nearly 900 days in Florida, giving residents ample time to leave their homes.
1. Indianapolis-Carmel, Ind.
> Pct. foreclosures vacated: 31.8%
> Total vacated homes: 2,488
> Median home price: $150,000 (48th highest)
Nearly one-third of foreclosed properties in the Indianapolis metro area were vacant. Among the likely contributors to this is that in the first quarter of 2013, it took 607 days, on average, to foreclose a property in Indiana. There are more than 7,800 homes in foreclosure in Indianapolis, with nearly 2,500 of them vacant. Foreclosure filings in the first quarter of 2013 were down by nearly 25% from the year before, although there were still 3,858 foreclosure filings in the quarter.
To see the rest of the top 10 cities with the most abandoned homes, visit 24/7 Wall St.
