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The Effects of the Foreclosure Crisis on the Metropolitan Fringe

Pretend and Extend–Our Mortgage Crisis Fantasy – Christopher B. Leinberger, Brookings Visiting Fellow, Metropolitan Policy Program

  • “According to Stan Humphries, the chief economist of Zillow, an online housing-research firm, if you plot changes in home values within a typical metro region on a satellite map, the result “looks like an archery target, with the outlying areas having experienced substantially higher total declines in home values” than areas closer to the central city. Using metropolitan level analysis in selected metropolitan areas (Denver, Atlanta, Washington, DC, etc.), my rule of thumb is that housing prices in fringe ZIP codes have fallen two times the percentage of their metropolitan average since the peak of 2005 or 2006, but that closer in, walkable urban housing has dropped only by only one-quarter as much. The bulk of the mortgage crisis lies on the metropolitan fringe.”
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