I believe New Mexico at number 5 least distressed. When real estate is more affordable, residents can save the extra money for emergency funds/investments, or spend on luxury goods without debt. I’ve seen quite a few more new cars, and luxury cars to boot, in average neighborhoods out here recently. That $1500/mo not going to mortgages (and reasonable home insurance rates, since replacement costs are lower on affordable homes, and lower property taxes) lets average people breathe a whole lot easier.