An especially gloomy report by the U.S. Conference of Mayors says that property values across the U.S. could decline by $1.2 trillion next year, slashing tax revenue by $6.6 billion.
Although California will be the hardest hit by the property value decrease, the New York City region will “see the greatest slowdown in the output of goods and services because of the mortgage crisis, according to the report.”
“The real estate crisis of 2007 and 2008 will go down in the record books,” according to the report, released as the Conference of Mayors gathers in Detroit today for a special meeting to discuss the housing slump. “The wave of foreclosures that has rippled across the U.S. has already battered some of our largest financial institutions, created ghost towns of once vibrant neighborhoods — and it’s not over yet.”
According to the report, New York/New Jersey will see a $10.4 billion loss in economic growth, Los Angeles will lose $8.3 billion and “$4 billion each in Dallas and Washington and $3.9 billion in Chicago.”
U.S. Mortgage Crisis Slams Property Values, State Tax Receipts [Bloomberg]