Foreclosures could cost cities $45 billion
A report from the Washington-based U.S. Conference of Mayors (USCM) predicts that the recent increase in foreclosures will result in a $166 billion loss to the gross domestic product and a $45 billion loss for the 10 cities hit hardest by the crisis. According to the report, the high foreclosure rate will slow the gross metropolitan product (GMP) for 128 cities by 2 percent in 2008. In addition, there will be 524,000 fewer jobs created next year, and $6.6 billion in tax revenues will be lost in 10 states. USCM recommends that cities organize ad campaigns to inform borrowers about counseling services to modify loans; increase the number of counselors available to borrowers; and educate young people about housing loans. The report is available at www.usmayors.org.
| 10 metro areas hit hardest by foreclosures | Projected GMP loss (millions) |
|---|---|
| New York | $10.3 |
| Los Angeles | $8.3 |
| Dallas | $4 |
| Washington | $3.9 |
| Chicago | $3.9 |
| San Francisco | $3.6 |
| Detroit | $3.2 |
| Boston | $3 |
| Philadelphia | $2.5 |
| Riverside, Calif. | $2.3 |
