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Foreclosures are on the rise in the United States, indicating growing financial strain for homeowners. According to ATTOM, in August 2025, there were 35,697 properties with foreclosure filings, marking an 18% increase from the previous year. The ongoing rise in foreclosures is attributed to affordability pressures in the current high-cost and high-interest-rate environment, impacting homeowners’ ability to sustain housing costs.
FULL STORY: Foreclosures Tick Up as Homeowners Struggle With ‘Affordability Pressures’
Key takeaways
- Foreclosure activity in the U.S. has been increasing for six consecutive months, with a 1% decrease from July but an 18% rise from the previous August.
- Affordability challenges are prominent, with home prices showing a 36.1% increase in typical list prices since August 2019, pushing some homeowners into financial distress.
- Nevada, South Carolina, and Florida have the highest foreclosure rates in the country, with 1 in every 3,987 housing units facing foreclosure filings in August.
- Texas, Florida, and California are driving the surge in foreclosure starts, with Texas leading at 2,982, followed by Florida at 2,803, and California at 2,558.
- Financial pressures are depleting household buffers, with Florida and Texas showing a significant increase in foreclosure starts, surpassing pre-pandemic levels.
This summary has been generated with AI tools and edited by Realtor.com News & Insights editors. The full story, written and edited by Realtor.com News & Insights newsroom journalists, is linked at the top of the summary.