As economists search for signs that the recession is abating, a look at the breakdown of foreclosures in Patchwork Nation’s community types finds that a new wave may be impacting the U.S. differently and could stall recovery.
Foreclosures are increasing in the wealthier, more populous Monied ‘Burbs communities, places that tend to drive consumer spending that may help revive the economy.
“If the foreclosure problem spreads to them it does not bode well,” said Dante Chinni, the director of the Patchwork Nation project for the Christian Science Monitor.
“What we’re seeing now, especially in these Monied ‘Burb communities, is its not really about driving the recession anymore, its just become another function of the recession.”
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In earlier data examinations, these places weren’t touched as much by the foreclosure crisis and the collapse of the subprime mortgage market. But as unemployment rises, even non-subprime mortgages are showing signs of trouble reports RealtyTrac, a firm that monitors foreclosures.
Chinni explores this foreclosure data more in-depth in on his post on the Christian Science Monitor “Are foreclosures leveling off or poised for another spike?”