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Massachusetts foreclosures shifting to suburbs

November 12, 2010 - A new report shows that there are more distressed units in Massachusetts suburbs compared to its cities, a trend that could mean relocating suburban families might have a tougher time selling their homes.

An examination of Warren Group data from the Massachusetts Housing Partnership found that foreclosures in the city of Boston and the state's 24 "gateway municipalities" - large urban areas with lower average incomes and education levels - made up 49 percent of all distressed units in the state. That was down from 59 percent in 2008 and 54 percent in 2009, and the first time in the study's history that suburban foreclosures outnumber those in the city.

The study highlighted Worcester County in particular, showing that a majority of foreclosures have shifted from major urban communities such as Worcester, Fitchburg and Leominster into rural towns such as Ashburnham and Winchendon. While urban homeowners tended to fall victim to the subprime mortgage crisis, the study says those living in the suburbs typically had difficulties with unemployment and the general economy, increasing their risk for foreclosure. More distressed properties have also dropped the values of surrounding suburban homes, making it difficult for those relocating families to sell their homes for more.

At the same time, the Bay State has it better than most when it comes to jobs market, a scenario which may encourage some out-of-state workers to consider moving there. The state's unemployment rate was 8.4 percent in September, well below the national rate of 9.6 percent.
 

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