While not quite a replay of the foreclosure boom of the mid 2000s, foreclosures are up in New York and its environs, even at the highest end of the market. The factors driving this, however, appear to be different than those that fomented the national foreclosure wave of 10 years ago. The Real Deal New York takes a deep look at what is transpiring.
“Severely cost-burdened” households — those that spend more than 50 percent of their income — made up 22.7 percent of households with mortgages.
There are signs that such cost burdens are taking a toll. In the first quarter of 2018, the New York metro area — including the city and parts of New Jersey and Pennsylvania — had the 22nd-highest rate of foreclosures of the 219 areas tracked by property data firm ATTOM Data Solutions.
During that three-month period, 920 homes were scheduled for foreclosure for the first time — a 31 percent year-over-year increase, according to PropertyShark. New foreclosures on Staten Island jumped 226 percent to 189, compared to 58 in the first quarter of 2017, according to the report. Brooklyn experienced a 64 percent year-over-year increase with 275. The Bronx followed with 117 scheduled foreclosures — a 33 percent increase — and Queens had 303, representing a 13 percent decrease year over year. Manhattan only logged 38.
Caroline Nagy, deputy director of policy and research at the Center for NYC Neighborhoods, noted that while banks have pulled back on originating riskier loans, they are more eager to foreclose on homes as property values rise.
“It’s kind of like the pendulum went too far the other way,” she said. “The next chapter of the story is a shift in people who have been living in these neighborhoods to much wealthier buyers.”
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