What State Has The Most Property Foreclosures In 2025? (& What It Means For The Housing Crisis)

Of the top 10 metropolitan areas hit hardest by foreclosures right now, half are located in Florida. Lakeland-Winterhaven sits at the top of the list, followed by Cape Coral-Fort Myers in third, Ocala in fifth, Jacksonville in sixth, and Palm Bay-Melbourne-Titusville in eighth. Reports show that 101,513 U.S. properties filed for foreclosure during the third quarter of 2025. While that's under 1% up from the previous quarter, it's 17% higher than a year ago. In Lakeland alone, there was an average of one foreclosure filing for every 470 housing units.

Realtor.com reports that a few reasons homes are going into foreclosure at such a high rate in Florida include the fact that a large percentage of homeowners in the state are retired and on fixed incomes, and increasing homeowners' association (HOA) fees are becoming unmanageable for them. On top of that, insurance premiums are rising, and there's a smaller demand for housing (probably due to houses being costly right now). Before you think you'll win by buying one of those foreclosed homes, read our things to know before diving into that expense. You'll also want to be in the know on fraudulent foreclosure schemes.

People are actually pulling their homes from sale rather than lowering their prices in Florida. While Forbes reports that a low supply of houses on the market means there won't be a market crash, other outlets report that some areas, including Miami, are facing issues like housing bubbles. High demand and limited supply are among the factors that lead to housing bubbles, but many other factors contribute to the problem. There is a chance that if someone were to purchase a home now, when housing prices are so high, they wouldn't be able to keep up with their payments, which is one issue housing bubbles create. Home prices in Miami are going up, but there isn't a big supply of homes. While this Florida city isn't on the list of foreclosure homes, it's still worth examining regarding the risk of a housing crisis.

Newsweek, in its coverage of homes pulled from the market due to decreased sales, points out that people aren't shopping for new homes in this post-pandemic climate. Higher interest rates are hurting people, and it's easier for some to walk away and let their homes go into foreclosure. If something doesn't change, there could be a housing crisis in full swing — as it could be a while before getting back to those normal, lower interest rates. These days, it's not just celebrities who can't afford their extravagant homes, but regular folks who can't afford their basic ones.