(The Center Square) – A new report found New York’s economy the most affected in the nation due to the COVID-19 pandemic downturn, with joblessness at nearly 16 percent and mortgage defaults at nearly 8.4 percent.
In its most recent Housing Hardship Index, Bankrate looked at unemployment numbers from the U.S. Department of Labor and mortgage delinquency data from the Black Knight firm, and concluded New York was the state most adversely affected by the recession in July.
The Bankrate metric found that after New York, the states faring worst in July were Nevada, New Jersey, Mississippi and Massachusetts.
“States experiencing high unemployment will see mortgage delinquencies surge if unemployment remains elevated as forbearance periods expire,” said Greg McBride, CFA, Bankrate chief financial analyst. “This year may see the worst for unemployment, but 2021 will likely bring the worst for mortgage delinquencies and defaults.”
New York’s July unemployment rate was 15.9 percent, which is up from 15.7 percent in June, and from 14.5 percent in May, Bankrate found. New York’s mortgage default rate was at 8.38 percent in July, an improvement from the June rate of 9.65 percent. Still, New York’s sum rate of 24.28 percent meant it ranked first in the nation for adverse economic impact.
According to the Centers for Disease Control and Prevention, as of Aug. 25, New York City had nearly 24,000 deaths from the coronavirus. While the city has recently curbed the spread of COVID-19, its economy has been especially hard hit by stay-at-home orders and government-mandated shutdowns.
At $1.7 trillion, New York’s economy is the third largest in the country, behind only California and Texas.
While Manhattan home sales have seen a decline, recently there has been more activity in Brooklyn and other outer boroughs, as well as the suburbs, said appraiser Jonathan Miller, president of Miller Samuel Inc.
“If you look at the suburban markets around New York, they’re showing a lot of strength,” Miller said.