U.S. Foreclosure Rates Rise in 2025 Amid Economic Pressures: A Regional Breakdown
As the U.S. housing market navigates a landscape marked by rising interest rates, persistent affordability challenges, and economic uncertainty, a subtle yet significant trend is emerging: foreclosure activity is increasing. While still far below the levels seen during the Great Recession, 2025 has witnessed a notable uptick in foreclosure filings, with certain states and metropolitan areas bearing the brunt of this shift.
National Foreclosure Trends in 2025
Data from ATTOM, a leading property data analytics firm, reveals that approximately 94,000 properties received foreclosure filings in the first quarter of 2025 — equating to roughly 1 in every 1,515 housing units. This trend intensified in the first half of the year, with nearly 140,000 foreclosure starts, marking a 7% rise compared to the first half of 2024 and a 41% increase over the first half of 2020.
Despite this rise, the overall national foreclosure rate remains historically low at just 0.13% of all housing units — or about 1 in every 758 homes. This data highlights that while foreclosures are increasing, the market is not approaching crisis levels seen during the Great Recession or the onset of the COVID-19 pandemic.
Regional Foreclosure Hotspots
The U.S. foreclosure landscape in 2025 is uneven, with some regions experiencing elevated housing distress while others remain relatively stable. States in the Midwest and Southeast have emerged as hotspots:
| Rank | State | Foreclosure Rate |
| 1 | Delaware | ~1 in every 761 homes |
| 2 | Illinois | ~1 in every 857 homes |
| 3 | Nevada | ~1 in every 874 homes |
| 4 | Indiana | Above national average |
| 5 | South Carolina | Above national average |
Conversely, states such as Vermont, Montana, Wyoming, and South Dakota report some of the nation’s lowest foreclosure rates, reflecting more resilient housing markets.
Metro Areas Under Pressure
Certain metropolitan areas are facing heightened…