COVID-19’s economic effects are proving unpredictable. Some states are being hammered by the resurgent disease, while others remain economically robust.
New Jersey’s economy is faring the fourth-worst during the pandemic, according to Bankrate’s Housing Hardship Index.
Using May mortgage delinquency rates from Black Knight and May unemployment rates from the U.S. Department of Labor, the report added these two metrics to determine which states (including Washington, D.C.) are suffering the worst economic situations now, and which real estate markets could be most affected post-pandemic.
The five states suffering the most are Nevada, Hawaii, Michigan, New Jersey and Rhode Island.
In May, New Jersey’s mortgage delinquency was the third highest in the nation at 10.49 percent and unemployment was 15.2 percent, tying the state for eighth highest with Illinois, making the state’s overall Housing Hardship reading 25.69.
“States experiencing high unemployment will see mortgage delinquencies surge if unemployment remains elevated as forbearance periods expire,” says Greg McBride, Bankrate chief financial analyst. “This year may see the worst for unemployment, but 2021 will likely bring the worst for mortgage delinquencies and defaults.”
The five states faring the best are South Dakota, North Dakota, Montana, Idaho and Nebraska, which topped the list.
