Florida had the most foreclosures in the US in 2025, studies declare | Real Estate Market Insights

Foreclosures continued to rise last yr, with Florida main the nation, although mortgage defaults stay pretty low relative to historic ranges.

In 2025, foreclosure filings had been reported on 367,460 US properties, up 14% from 2024 however still 25% below 2019, before pandemic disruptions altered the dynamics of the housing market, according to year-end data from real estate analytics firm ATTOM.

Florida had the highest foreclosure rate of any state last yr, with foreclosures filings on 0.44% of residential properties in the Sunshine State. Following had been Delaware (0.42%), South Carolina (0.41%), and Illinois (0.40%).

“Florida leads the nation in filings, as homeowners there face heightened affordability pressures from rising insurance premiums, property taxes, and overall ownership costs,” says Realtor.com® senior financial research analyst Hannah Jones.

“Growing home supply has softened demand in parts of the state, contributing to slower price growth and longer time on market. Together, these dynamics increase the risk of foreclosure for some homeowners, particularly those who bought near the peak of the market or are carrying higher monthly costs,” Jones provides.

Foreclosures continued to rise in 2025, with Florida main the nation. Andy Dean – stock.adobe.com

Meanwhile, the states with the lowest foreclosures charges in 2025 had been South Dakota (0.03%), Vermont (0.05%), and Montana (0.07%).

Nationwide, 0.26% of residential properties had a foreclosures submitting last yr, less than the 0.36% seen in 2019 and much below the crisis-level peak of 2.23% recorded in 2010.

“Foreclosure activity increased in 2025, reflecting a continued normalization of the housing market following several years of historically low levels,” said Rob Barber, CEO of ATTOM.

“While filings, starts, and repossessions all rose compared to 2024, foreclosure activity remains well below pre-pandemic norms and a fraction of what we saw during the last housing crisis.”

Barber says that the current uptick in foreclosures is due more to market recalibration than widespread house owner misery, with strong equity positions and more disciplined lending persevering with to restrict risk.

Aggregate house owner equity as a share of real estate worth was at 71.6% in the third quarter, down from a report high however still remarkably healthy, according to recent Federal Reserve data.

In 2025, Florida had foreclosures filings on 0.44% of residential properties. bilanol – stock.adobe.com

It means that even if properties had been to lose 10% of their worth in a single day, house owner equity would still be at 68.4%, a still-strong level, limiting the foreclosures risk from mortgages going underwater.

Foreclosure filings bounce 57% in December

The ATTOM report also consists of new data for December 2025, displaying there have been 44,990 US properties with foreclosure filings last month, up 26% from the earlier month and 57% increased than a yr in the past.

States with the worst foreclosures charges in December 2025 had been New Jersey (1 in every 1,734 housing items with a foreclosures submitting), South Carolina (1 in every 1,917 housing items) and Maryland (1 in every 1,961 housing items).

At the metro level among cities with a population of 1 million or more, Baltimore led the nation in foreclosures charge last month, adopted by Cleveland and Philadelphia.

San Jose, CA, had the lowest foreclosures charge of any large metro in December, adopted by Milwaukee and Kansas City.

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