In many ways, Georgia has sleepwalked through its housing crisis.
It wasn’t a poster child for the real estate bust in the way Arizona, Florida and other Sunbelt states were, back when the collapse in home values dominated the headlines. Yet the bust started earlier here and has lingered much longer, as attested by the recent news that the state’s foreclosure rate is now the highest in the country. Metro Atlanta ranks second in the list of large metro areas, behind only the Riverside-San Bernadino-Ontario metro – the so-called Inland Empire – in California. Douglas County leads the list of the nation’s counties, with one foreclosure for every 122 properties.
Testifying at a U.S. House committee hearing in 2009, Georgia Tech professor Dan Immergluck, an early prophet of the perils of the sub prime lending market and author of the book “Foreclosed: High Risk Lending, Deregulation and the Undermining of America’s Mortgage Market,” said some south Atlanta neighborhoods had experienced boom-bust cycles worse than those more widely noted in Las Vegas or Phoenix.
Atlanta’s foreclosure map has changed, Immergluck said in a recent interview, reflecting new and troubling developments in the economy.