Metro Atlanta still in financial distress

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Metro Atlanta still in financial distress
August 22, 2012
y Christopher Quinn

The Atlanta Journal-Constitution

Metro Atlantans remained just below the financial distress line though the nation broke above it for the first time in four years, according to an Atlanta consumer services agency.
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Better housing situations and employment drove the nation's financial score up to 71.3 — the distress line is 70 on on 100-point scale developed by CredAbility. It includes measures of employment, housing, credit, household budget management and net worth.

Metro Atlanta's score was 66.4 for the second quarter, up from 64.9 during the same period last year.

"Atlanta continues to struggle with both employment and housing issues," said Mark Cole, CredAbility's executive vice president.

The unemployment and underemployment rates regionally are above 16 percent combined, he said. The region has some of the highest foreclosure rates in the country.

Nationally, fewer Americans made late payments on mortgages, many refinanced loans at lower interest rates to cut monthly housing costs, and household credit has improved to 1996 levels, Cole said.

CredAbility collects data from multiple sources and its 440,000 clients nationwide to produce the index quarterly.

Though Atlanta's housing market is seeing signs of stability, including increasing home prices, the job market has remained stale, said Wells Fargo economist Mark Vitner.

"There is not a lot of income growth," he said. "Close to 40 percent of the jobs we've added are in retail trade, home health care, temporary jobs and leisure and hospitality," which typically pay lower wages.

Consumer confidence also lags, Vitner said.

With gas prices climbing, Europe's economy wobbling and the state unemployment rate inching back up — Georgia's rate is 9.3 percent, a point above the national average — it will be tough for the state to break the 70 score this year, Cole said.

"We are not out of the woods. We are headed in the right direction, but it still looks bumpy ahead," Cole said.

Most financially distressed metro area: Orlando, 59.47

Least financially distressed metro area: Boston, 77.42

Metro Atlanta: 66.4

Note: 70 is considered the distressed point