Home foreclosures jump 19% in October as housing market shows new strain

Home foreclosures in the U.S. rose sharply in October 2025, with a 19% jump compared to the same period last year, signaling new stress in the housing market and the eighth consecutive month of annual increases in foreclosure activity.​

Key Statistics

• 36,766 properties had foreclosure filings in October 2025, which includes default notices, scheduled auctions, or bank repossessions.​

• The national foreclosure rate reached one in every 3,871 housing units.​

• Lenders started the foreclosure process on 25,129 properties in October, up 6% from September and up 20% compared to October 2024.​

• Completed foreclosures and bank repossessions rose 32% year-over-year, with 3,872 U.S. properties repossessed in October.​

Regional Trends

• The Southern states, especially Florida, Texas, and California, led in the number of foreclosure starts. Florida posted 4,136 foreclosure starts, Texas 3,080, and California 2,685.​

• Tampa, FL had the highest foreclosure rate among large metro areas, with one in every 1,373 housing units filing for foreclosure.​

Housing Market Impact

• Inventory continued to rise for the 24th straight month, though price growth slowed, and homes are taking longer to sell.​

• Analysts note the market is cooling unevenly, with some regions transitioning toward more buyer-friendly conditions while others remain tight on supply and prices.​

• The increases in foreclosure activity are seen as a gradual normalization, but also reflect that some homeowners are struggling with higher housing and borrowing costs.​

Broader Economic Context

• While foreclosure rates remain below historic highs, their steady rise points to broader financial pressures as the market adjusts from previous periods of low rates and high demand.​

• Continued upward trends in foreclosures over several consecutive quarters suggest that U.S. homeowners face growing challenges in 2025, even as the overall market supply remains robust.​

This surge in foreclosures suggests increased distress in the housing market as economic pressures mount and more homeowners struggle to keep up with their mortgage payments.