Pareto Principle In Action : 80 Percent Of The Country's Foreclosures Occur In 20 Percent Of The States
By Bob Phillips, CDPE, SFR, South Orange Co., CA
(Realty ONE Group)
The Pareto Principle is a statistical concept most commonly known as the 80/20 Rule. It says 80 percent of the effects come from 20 of the causes. Apparently, the 80/20 Rule applies to foreclosures, too -- at least according to data compiled by foreclosure-tracking firm RealtyTrac. Based on data from May, 11 states accounted for 80% of the country's foreclosure activity. The remaining 20% was spread across the 39 others. That's 80/20 almost to the tee. The disparity goes deeper that that, though. The top three states in RealtyTrac's list -- California, Florida, Nevada -- were home to half of May's foreclosure-related actions. Clearly, foreclosures are concentrated in certain geographies. But, no matter in which state you live, foreclosures still impact you. This is because mortgage l...