Demand for single-family homes surged in the past two year as the coronavirus pandemic hit. The increased demand led to soaring home prices. (These are 15 cities with the most overpriced housing markets.)
The reason, according to the Federal Reserve Bank of Dallas, was a perfect-storm scenario that included several factors. Low mortgage interest rates, along with stimulus checks that boosted incomes, raised demand for housing. The pandemic also led to increased demand for work-from-home space away from dense urban areas. At the same time, limited construction during lockdowns and supply-chain disruptions constrained supply of homes for sale — all leading to higher home prices.
But now the U.S. housing market appears to be coming back to earth, with some parts of the country showing early distress signs. Foreclosure filings — a measure of the health of housing markets at local, state, or national levels — are on the rise. Home foreclosure filings include default notices, bank repossessions, and scheduled auctions.
According to property data provider Attom, foreclosure filings are up 153% in the first half of the year compared to the same period last year, though they are still slightly lower than they were in the first half of 2020.
To determine the states with the most foreclosures so far this year, 24/7 Wall St. reviewed data from Attom. States are ranked by their foreclosure rate — the number of foreclosures per housing units. All data came from Attom except for population, which came from the U.S. Census Bureau’s 2020 American Community Survey. Population figures are five-year averages.
Nationwide, 1 in every 854 properties was in one stage of the foreclosure process in the first half of the year. By comparison, the foreclosure rate was much higher in 12 states, including Ohio (1 in every 475), New Jersey (1 in every 410), and Illinois (1 in every 385). (These are the neighborhoods with the most foreclosures in May.)
Other states with the 10 states highest foreclosure rates include Nevada, which ranks seventh with a foreclosure rate of 1 in every 567, Delaware, which ranks fourth with a foreclosure rate 1 in every 497 properties, and Florida, which ranks sixth with a foreclosure rate at 1 in every 560 housing units. Florida also had the highest number of housing units in foreclosure.
At the other end of the spectrum, the Dakotas and Vermont and the third lowest foreclosure rates, with more than one foreclosure in every 4,400 housing units. Also in the bottom 10 are several states in the West.
Here are the states with the most foreclosures so far this year.
50. South Dakota
> Foreclosure rate: 1 in every 9,068 housing units
> Properties with foreclosure filing: 43 – #50 highest
> Housing units: 389,921 – #46 highest
> Median home value: $174,600 – #35 highest
> Population: 872,995
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49. Vermont
> Foreclosure rate: 1 in every 7,598 housing units
> Properties with foreclosure filing: 44 – #49 highest
> Housing units: 334,318 – #48 highest
> Median home value: $230,900 – #23 highest
> Population: 643,077
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48. North Dakota
> Foreclosure rate: 1 in every 4,466 housing units
> Properties with foreclosure filing: 83 – #48 highest
> Housing units: 370,642 – #47 highest
> Median home value: $199,900 – #26 highest
> Population: 779,094
47. West Virginia
> Foreclosure rate: 1 in every 3,626 housing units
> Properties with foreclosure filing: 236 – #44 highest
> Housing units: 855,635 – #37 highest
> Median home value: $123,200 – #50 highest
> Population: 1,793,716
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46. Kansas
> Foreclosure rate: 1 in every 2,810 housing units
> Properties with foreclosure filing: 454 – #39 highest
> Housing units: 1,275,689 – #34 highest
> Median home value: $157,600 – #41 highest
> Population: 2,937,880
45. Oregon
> Foreclosure rate: 1 in every 2,782 housing units
> Properties with foreclosure filing: 652 – #37 highest
> Housing units: 1,813,747 – #27 highest
> Median home value: $336,700 – #7 highest
> Population: 4,237,256
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44. Montana
> Foreclosure rate: 1 in every 2,654 housing units
> Properties with foreclosure filing: 194 – #46 highest
> Housing units: 514,803 – #43 highest
> Median home value: $244,900 – #18 highest
> Population: 1,084,225
43. Idaho
> Foreclosure rate: 1 in every 2,473 housing units
> Properties with foreclosure filing: 304 – #43 highest
> Housing units: 751,859 – #39 highest
> Median home value: $235,600 – #21 highest
> Population: 1,839,106
42. Kentucky
> Foreclosure rate: 1 in every 2,432 housing units
> Properties with foreclosure filing: 820 – #33 highest
> Housing units: 1,994,323 – #26 highest
> Median home value: $147,100 – #46 highest
> Population: 4,505,836
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41. Washington
> Foreclosure rate: 1 in every 2,400 housing units
> Properties with foreclosure filing: 1,334 – #29 highest
> Housing units: 3,202,241 – #13 highest
> Median home value: $366,800 – #5 highest
> Population: 7,705,281
40. Alaska
> Foreclosure rate: 1 in every 1,985 housing units
> Properties with foreclosure filing: 160 – #47 highest
> Housing units: 317,524 – #49 highest
> Median home value: $275,600 – #15 highest
> Population: 715,304
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39. Arkansas
> Foreclosure rate: 1 in every 1,715 housing units
> Properties with foreclosure filing: 796 – #34 highest
> Housing units: 1,365,265 – #31 highest
> Median home value: $133,600 – #48 highest
> Population: 3,011,524
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38. New Hampshire
> Foreclosure rate: 1 in every 1,593 housing units
> Properties with foreclosure filing: 401 – #40 highest
> Housing units: 638,795 – #41 highest
> Median home value: $272,300 – #16 highest
> Population: 1,377,529
37. Rhode Island
> Foreclosure rate: 1 in every 1,560 housing units
> Properties with foreclosure filing: 310 – #42 highest
> Housing units: 483,474 – #44 highest
> Median home value: $276,600 – #14 highest
> Population: 1,097,379
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36. Massachusetts
> Foreclosure rate: 1 in every 1,535 housing units
> Properties with foreclosure filing: 1,954 – #25 highest
> Housing units: 2,998,537 – #16 highest
> Median home value: $398,800 – #3 highest
> Population: 7,029,917
35. Tennessee
> Foreclosure rate: 1 in every 1,528 housing units
> Properties with foreclosure filing: 1,984 – #23 highest
> Housing units: 3,031,605 – #15 highest
> Median home value: $177,600 – #33 highest
> Population: 6,910,840
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34. Wisconsin
> Foreclosure rate: 1 in every 1,503 housing units
> Properties with foreclosure filing: 1,815 – #27 highest
> Housing units: 2,727,726 – #19 highest
> Median home value: $189,200 – #29 highest
> Population: 5,893,718
33. Nebraska
> Foreclosure rate: 1 in every 1,443 housing units
> Properties with foreclosure filing: 585 – #38 highest
> Housing units: 844,278 – #38 highest
> Median home value: $164,000 – #38 highest
> Population: 1,961,504
32. Hawaii
> Foreclosure rate: 1 in every 1,431 housing units
> Properties with foreclosure filing: 392 – #41 highest
> Housing units: 561,066 – #42 highest
> Median home value: $636,400 – #1 highest
> Population: 1,455,271
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31. Mississippi
> Foreclosure rate: 1 in every 1,397 housing units
> Properties with foreclosure filing: 945 – #31 highest
> Housing units: 1,319,945 – #32 highest
> Median home value: $125,500 – #49 highest
> Population: 2,961,279
30. Wyoming
> Foreclosure rate: 1 in every 1,394 housing units
> Properties with foreclosure filing: 195 – #45 highest
> Housing units: 271,887 – #50 highest
> Median home value: $228,000 – #24 highest
> Population: 576,851
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29. New Mexico
> Foreclosure rate: 1 in every 1,225 housing units
> Properties with foreclosure filing: 768 – #35 highest
> Housing units: 940,859 – #36 highest
> Median home value: $175,700 – #34 highest
> Population: 2,117,522
28. Virginia
> Foreclosure rate: 1 in every 1,212 housing units
> Properties with foreclosure filing: 2,985 – #15 highest
> Housing units: 3,618,247 – #12 highest
> Median home value: $282,800 – #12 highest
> Population: 8,631,393
27. Minnesota
> Foreclosure rate: 1 in every 1,169 housing units
> Properties with foreclosure filing: 2,126 – #21 highest
> Housing units: 2,485,558 – #22 highest
> Median home value: $235,700 – #20 highest
> Population: 5,706,494
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26. Utah
> Foreclosure rate: 1 in every 1,127 housing units
> Properties with foreclosure filing: 1,022 – #30 highest
> Housing units: 1,151,414 – #35 highest
> Median home value: $305,400 – #10 highest
> Population: 3,271,616
25. Louisiana
> Foreclosure rate: 1 in every 1,107 housing units
> Properties with foreclosure filing: 1,873 – #26 highest
> Housing units: 2,073,200 – #25 highest
> Median home value: $168,100 – #37 highest
> Population: 4,657,757
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24. New York
> Foreclosure rate: 1 in every 1,106 housing units
> Properties with foreclosure filing: 7,673 – #7 highest
> Housing units: 8,488,066 – #4 highest
> Median home value: $325,000 – #9 highest
> Population: 20,201,249
23. Missouri
> Foreclosure rate: 1 in every 1,073 housing units
> Properties with foreclosure filing: 2,596 – #17 highest
> Housing units: 2,786,621 – #18 highest
> Median home value: $163,600 – #39 highest
> Population: 6,154,913
22. Colorado
> Foreclosure rate: 1 in every 1,073 housing units
> Properties with foreclosure filing: 2,322 – #19 highest
> Housing units: 2,491,404 – #21 highest
> Median home value: $369,900 – #4 highest
> Population: 5,773,714
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21. Maine
> Foreclosure rate: 1 in every 1,050 housing units
> Properties with foreclosure filing: 704 – #36 highest
> Housing units: 739,072 – #40 highest
> Median home value: $198,000 – #27 highest
> Population: 1,362,359
20. Pennsylvania
> Foreclosure rate: 1 in every 1,038 housing units
> Properties with foreclosure filing: 5,531 – #10 highest
> Housing units: 5,742,828 – #5 highest
> Median home value: $187,500 – #30 highest
> Population: 13,002,700
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19. Texas
> Foreclosure rate: 1 in every 1,005 housing units
> Properties with foreclosure filing: 11,527 – #4 highest
> Housing units: 11,589,324 – #2 highest
> Median home value: $187,200 – #31 highest
> Population: 29,145,505
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18. Arizona
> Foreclosure rate: 1 in every 961 housing units
> Properties with foreclosure filing: 3,207 – #14 highest
> Housing units: 3,082,000 – #14 highest
> Median home value: $242,000 – #19 highest
> Population: 7,151,502
17. North Carolina
> Foreclosure rate: 1 in every 958 housing units
> Properties with foreclosure filing: 4,917 – #11 highest
> Housing units: 4,708,710 – #8 highest
> Median home value: $182,100 – #32 highest
> Population: 10,439,388
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16. Alabama
> Foreclosure rate: 1 in every 925 housing units
> Properties with foreclosure filing: 2,475 – #18 highest
> Housing units: 2,288,330 – #24 highest
> Median home value: $149,600 – #44 highest
> Population: 5,024,279
15. Iowa
> Foreclosure rate: 1 in every 899 housing units
> Properties with foreclosure filing: 1,571 – #28 highest
> Housing units: 1,412,789 – #30 highest
> Median home value: $153,900 – #42 highest
> Population: 3,190,369
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14. California
> Foreclosure rate: 1 in every 881 housing units
> Properties with foreclosure filing: 16,340 – #2 highest
> Housing units: 14,392,140 – #1 highest
> Median home value: $538,500 – #2 highest
> Population: 39,538,223
13. Maryland
> Foreclosure rate: 1 in every 863 housing units
> Properties with foreclosure filing: 2,934 – #16 highest
> Housing units: 2,530,844 – #20 highest
> Median home value: $325,400 – #8 highest
> Population: 6,177,224
12. Oklahoma
> Foreclosure rate: 1 in every 824 housing units
> Properties with foreclosure filing: 2,120 – #22 highest
> Housing units: 1,746,807 – #28 highest
> Median home value: $142,400 – #47 highest
> Population: 3,959,353
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11. Connecticut
> Foreclosure rate: 1 in every 773 housing units
> Properties with foreclosure filing: 1,979 – #24 highest
> Housing units: 1,530,197 – #29 highest
> Median home value: $279,700 – #13 highest
> Population: 3,605,944
10. Michigan
> Foreclosure rate: 1 in every 773 housing units
> Properties with foreclosure filing: 5,913 – #8 highest
> Housing units: 4,570,173 – #9 highest
> Median home value: $162,600 – #40 highest
> Population: 10,077,331
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9. Georgia
> Foreclosure rate: 1 in every 770 housing units
> Properties with foreclosure filing: 5,731 – #9 highest
> Housing units: 4,410,956 – #10 highest
> Median home value: $190,200 – #28 highest
> Population: 10,711,908
8. Indiana
> Foreclosure rate: 1 in every 606 housing units
> Properties with foreclosure filing: 4,822 – #12 highest
> Housing units: 2,923,175 – #17 highest
> Median home value: $148,900 – #45 highest
> Population: 6,785,528
7. Nevada
> Foreclosure rate: 1 in every 567 housing units
> Properties with foreclosure filing: 2,259 – #20 highest
> Housing units: 1,281,018 – #33 highest
> Median home value: $290,200 – #11 highest
> Population: 3,104,614
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6. Florida
> Foreclosure rate: 1 in every 560 housing units
> Properties with foreclosure filing: 17,624 – #1 highest
> Housing units: 9,865,350 – #3 highest
> Median home value: $232,000 – #22 highest
> Population: 21,538,187
5. South Carolina
> Foreclosure rate: 1 in every 513 housing units
> Properties with foreclosure filing: 4,568 – #13 highest
> Housing units: 2,344,963 – #23 highest
> Median home value: $170,100 – #36 highest
> Population: 5,118,425
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4. Delaware
> Foreclosure rate: 1 in every 497 housing units
> Properties with foreclosure filing: 903 – #32 highest
> Housing units: 448,735 – #45 highest
> Median home value: $258,300 – #17 highest
> Population: 989,948
3. Ohio
> Foreclosure rate: 1 in every 475 housing units
> Properties with foreclosure filing: 11,028 – #5 highest
> Housing units: 5,242,524 – #7 highest
> Median home value: $151,400 – #43 highest
> Population: 11,799,448
2. New Jersey
> Foreclosure rate: 1 in every 410 housing units
> Properties with foreclosure filing: 9,177 – #6 highest
> Housing units: 3,761,229 – #11 highest
> Median home value: $343,500 – #6 highest
> Population: 9,288,994
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1. Illinois
> Foreclosure rate: 1 in every 385 housing units
> Properties with foreclosure filing: 14,086 – #3 highest
> Housing units: 5,426,429 – #6 highest
> Median home value: $202,100 – #25 highest
> Population: 12,812,508
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