Although home prices have stabilized from recent record highs, affordability remains a challenge for many U.S. buyers. Combined with rising unemployment and higher foreclosure rates in some markets, that pressure is increasing housing market risk, according to Attom’s latest "Housing Risk Report."
The report analyzed 580 counties using affordability, equity and foreclosure metrics and unemployment data to identify markets most vulnerable to declines. The riskiest counties overall were Charlotte County, Fla.; Butte County, Calif.; Charles County, Md.; Shasta County, Calif.; and Cumberland County, N.J.

Among the 50 riskiest counties, 12 were in Florida, nine in California, five in Illinois and five in New Jersey. High unemployment and forecl...