Cities Hit Hard By The Recession

Although most if not all Americans were somehow affected by the recession, there are some areas that we're and will be affected greater than others. In states such as California, Nevada, and Florida their economies have been hit hard. Mainly because of the declining housing market, which was the main reason for their past economic booms. Foreclosure rates in these states are higher than any other area. In cities such as San Diego over half of the people living there owe more on their houses than they are worth. 40% of home sales in Las Vegas in the past year have been foreclosure sales. This is also hurting the sale prices of homes that aren't foreclosure sales.

When these real estate markets hurt, they hurt the entire state economy. Unemployment rates in these states are soaring. This is causing business spending cuts, lower tax revenue and an increase on public spending, digging these cities into even bigger holes. In cities, who's economies used to rely on real estate are getting hit hard and it's going to take a while for them to get out.

For More Info: http://www.forbes.com/2008/10/15/economy-housing-recession-biz-beltway-cx_jz_1015econocities.html