Is there a correlation between the number of Foreclosures and Unemployment. Can we assume that those States with more unemployment will have more Foreclosures?
Below are the ranks for the Top 10 Foreclosure States according to Realty Trac. Illinois is listed as 10th by Realty Trac but other poles show Maryland as 10th and Illinois slipping to 12th.
1 out of every House Holds (HH) is the number of family households that has received a foreclosure notice. This information came from a recent CNBC poll.
The unemployment data comes from the Bureau of Labor Statistics.
From the data we can understand why Michigan is listed as number 1 in terms of unemployment with the loss of jobs from the automobile industry in Detroit by why are they ranked 8th in terms of unemployment. Will there be more foreclosures in Michigan due to the high unemployment?
Nevada is Ranked number 1 in Foreclosures and Number 2 in terms of unemployment. These statistics make sense.
Yet Rhode Island which is ranked 3 in terms of unemployment at 13% does not even make the top 10 list in terms of Foreclosures. What is Rhode Island doing that other states are not?
In contrast Utah which is 6th on the list of states with the most Foreclosures (1 out 251 households) has the lowest unemployment rate at 6.2 %.
It appears the statistics are inconclusive when it comes to a coorelation between State Rank in Foreclosures and Unemployment Rate.
| Foreclosure Rank |
State |
1 out of every # of HH |
Unemployment Rank |
State % Unemployment |
| 1 |
Nevada |
1-59 |
2 |
13.3% |
| 2 |
Arizona |
1-179 |
22 |
9.1% |
| 3 |
Calif |
1-154 |
4 |
12.2% |
| 4 |
Florida |
1-158 |
8 |
11.0% |
| 5 |
Idaho |
1-250 |
26 |
8.5% |
| 6 |
Utah |
1-251 |
51 |
6.2% |
| 7 |
Georgia |
1-265 |
14 |
10.1% |
| 8 |
Michigan |
1-270 |
1 |
15.3% |
| 9 |
Colorado |
1-342 |
39 |
7% |
| 10 |
Illinois |
1-363 |
12 |
10.5% |
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Oh, I agree, and I think we are not out of the woods anytime soon!