Jax residents among most financially distressed in the US, study finds (Courtesy of the Jacksonville Business Journal) — Jacksonville residents have been hit by inflation just as the rest of the nation — and most of the world — has, and the latest report by WalletHub ranks it among the most financially distressed locations in the nation.
The study examined which of the 100 largest cities in the U.S. are dealing with the biggest financial burdens in 2024. Metrics include average credit score, bankruptcy filings, people with accounts in distress and loans.
Jacksonville ranked 10th among cities with the most financial distress; the city ranks 11th overall in the subcategory for people with accounts in distress.
WalletHub defines distress as having an account that is in forbearance or has its payments deferred, meaning the account holder is temporarily allowed to not make payments due to financial difficulties.
“Getting out of the downward spiral of financial distress is no easy feat. You may get temporary relief from your lenders by not having to make payments, but all the while, interest will keep building up, making the debt even harder to pay off,” said a WalletHub analyst in a statement. “People who find themselves in financial distress should budget, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control.”
Jacksonville was the highest-ranked city in Florida in the study. Miami was 12th and Tampa 22nd.
Since the pandemic, housing costs in Northeast Florida have soared, and competition has increased as more people move to the area.
The most recent report from the Northeast Florida Association of Realtors — with statistics through January — showed a housing affordability index of 70, which was actually 3.7% better than the close of 2023.
The Home Affordability Index measures whether a typical family earns enough to qualify for a mortgage on a typical home, based on current interest rates, median income and median home prices. A higher number means greater affordability. An index of 100 is defined as the point where a median-income family has the exact amount of income needed to purchase a median-priced existing home. An index value over 100 means that the family has more than enough income, while a value below 100 means that a family doesn’t have enough income to qualify for a mortgage loan.
The 10 most distressed and least distressed cities can be found below.
Most distressed
- Chicago
- Houston
- New York
- Los Angeles
- Dallas
- Las Vegas
- San Antonio, Texas
- Atlanta
- Riverside, California
- Jacksonville
Least distressed
- Madison, Wisconsin
- Glendale, Arizona
- Jersey City, New Jersey
- Pittsburgh
- Lincoln, Nebraska
- Des Moines, Iowa
- Chandler, Arizona
- Gilbert, Arizona
- Scottsdale, Arizona
- Boise, Idaho
Photo courtesy of Visit Jacksonville
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