Hard Hit Foreclosure Areas To Lose Even More
November 29, 2007
According to a recent report by the US Conference of Mayors, the increase in foreclosures will result in billions of dollars being lost in some of the nation’s largest metropolitan areas.
The report also suggested that homeowners and lending institutions could work together to help offset this future crisis.
The report was prepared by Global Insight, a forecasting and consulting firm. It suggested that lowered residential investments, decreased spending in the construction market as well as lowered consumer spending could total up to create severe financial problems for many of the nation’s largest cities.
According to the report: “The wave of foreclosures that has rippled across the U.S. has already battered some of our largest financial institutions, created ghost towns of once vibrant neighborhoods — and it’s not over yet”.
The most severe losses in economic vitality are being projected for country’s largest metropolitan areas. For example, the largest loss is expected for New York with the city losing $10.4 billion in economic activity in 2008.
Other cities will suffer as well. Los Angeles is expected to lose $8.3 billion while Washington and Dallas can see losses of nearly $4 billion each. Chicago may see a loss of as much as $3.9 billion.