report released on Tuesday articulated that Houston is the worst of the nation's economic downturn so far, and is expected to see its economic output growth dip by $2.3 billion in 2008.
Prepared by economic analysis firm Global Insight Inc., the report titled as, "The Mortgage Crisis: Economic and Fiscal Implications for Metro Areas," was released at the start of the U.S. Conference of Mayors in Detroit.
According to the report, the economic output losses for 361 metropolitan areas - referred to as gross metropolitan product (GMP) – has been projected to $166 billion in 2008, with the combined economic loss of the top 10 metro areas exceeding $45 billion.
New York, the largest metropolitan area, tops the list with an expected $10 billion loss in 2008 economic output as a result of the mortgage crisis, followed by Los Angeles with $8.3 billion, Dallas and Washington at $4 billion each and Chicago at $3.9 billion.
Anticipating the growth loss of $2.31 billion, Houston ranks just out of the top 10 of those metro areas predicted to be the most affected. In 10th place is the Riverside-San Bernardino-Ontario area of California at $2.37 billion.
According to the report, 128 metro areas will be pushed into a "sluggish" GMP growth of less than 2 percent in 2008. Additionally, the report projects that the foreclosure crisis will result in 524,000 fewer jobs being created next year and a potential loss of $6.6 billion in tax revenues in 10 states.
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