In this article, we will take a look at the 30 US cities with the most foreclosures in 2023. If you want to skip our discussion on the trends in the real estate market, you can go directly to the 5 US Cities With the Most Foreclosures in 2023.
Following the expiration of the pandemic-related federal suspension on foreclosures in mid-2021, there has been a noticeable increase in the number of foreclosure filings. Around 2 million homeowners could not make their mortgage payments during the COVID-related lockdown. The challenges persist, particularly for low-income borrowers, as they struggle with the accumulated burden of mortgage payments. The impact of inflationary pressures on the US economy prompted the Federal Reserve to implement interest rate hikes, which also led to a rise in mortgage rates. While an official recession has not been declared, multiple factors indicate that the US economy is under strain. Persistent inflation, low employment rates, and an increase in household debt contribute to the economic stress. In addition to the rise in foreclosures, credit card delinquencies have also reached their highest levels since 2011.
The US foreclosure rate chart, released by property data provider ATTOM, indicated an overall increase in foreclosure filings during Q2 and Q3 as compared to 2022. In October 2023, one in every 4,051 housing units experienced a foreclosure filing. Among the states with the highest foreclosure rates, Delaware had one foreclosure filing in every 2,432 housing units, followed by Ohio with one in every 2,492 housing units, and New Jersey with one in every 2,550 housing units. With the average US home price ranging around $391,800, home ownership is becoming progressively difficult for both prospective and existing owners.
In October 2023, the number of housing units filing for foreclosure reached 34,472. This represented a 6.03% drop from the last month and a 6.47% rise from October 2022. Despite the slight economic upturn, many homeowners are still struggling to meet their mortgage obligations. Prospective homeowners are concerned with the question of whether foreclosures will increase in 2024. The outlook for 2024 suggests that it might be a better year for home purchases, particularly in certain regions. While overall home prices are expected to remain high, industry experts anticipate a decline in prices in specific areas of the country. You can check out the 25 Cities Where Home Prices Are Falling Now here.
Some of the biggest companies operating in the US real estate market include Equinix, Inc. (NASDAQ:EQIX), American Tower Corporation (NYSE:AMT), and Realty Income Corporation (NYSE:O). Here’s what RiverPark Advisors said about Equinix, Inc. (NASDAQ:EQIX) in its Q3 2023 investor letter:
“Equinix, Inc. (NASDAQ:EQIX): EQIX, a position we have held before, is a REIT that provides a global web of network-neutral, multi-tenant data centers that allow enterprises to bring together and interconnect the infrastructure required to compete in the digital economy. The company operates 248 data centers in 32 countries and 72 markets. These datacenters sit on top of the cable infrastructure and house the internet service provider equipment that connects and powers the internet.
The company charges tenants rent for colocation space, plus metered power and interconnects utilized. EQIX’s revenue growth is driven by price increases, greater cross-connect utilization, and new data center development. We believe the company can compound revenue at more than 10% a year over the next five years, and more than double Funds From Operations (FFO). We re-initiated a small position in August.”
An aerial view of a real estate property with multiple buildings and pavement in the foreground.
Our Methodology
To shortlist the 30 US cities with the most foreclosures in 2023, we consulted ATTOM’s 2023 US Foreclosure Market Report. ATTOM is a leading provider of real estate and property information. The report analyzed 223 metropolitan statistical areas with a population of no less than 100,000. It’s important to note that for certain cities, determining foreclosure rates on an individual basis may be impractical, leading authorities to utilize the metropolitan statistical area (MSA) classification. An MSA is a region comprising a central city and its surrounding communities, interconnected by social and economic factors. We have ranked the cities in ascending order of the foreclose rates in the first half of 2023.
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30 US Cities With the Most Foreclosures in 2023
30. South Bend-Mishawaka, IN-MI
Foreclosure Rate: 1 in every 494 housing units
Change in foreclosures from Jan-Jun 2022: -6.1%
The median property values in this area were reported to be $168,638. Meanwhile, the median household income for South Bend-Mishawaka stood at $58,996, with a homeownership rate of 70.7%.
29. Augusta-Richmond, GA-SC
Foreclosure Rate: 1 in every 490 housing units
Change in foreclosures from Jan-Jun 2022: +7.4%
The area recorded a median property value of $182,000, accompanied by a median household income of $58,093. The homeownership rate stands at 67.6%.
28. Vallejo-Fairfield, CA
Foreclosure Rate: 1 in every 486 housing units
Change in foreclosures from Jan-Jun 2022: +21.2%
With a population of 451,432, the reported median property values stood at $571,228. The median household income was $89,648. Meanwhile, a significant portion of homeowners in the area, specifically 72.6%, had mortgages.
27. Palm Bay-Melbourne-Titusville, FL
Foreclosure rate: 1 in every 481 housing units
Change in foreclosures from Jan-Jun 2022: +9.4%
This region has a population of 601,573 with median property values of $353,450. The average household income in the area is $63,632. The homeownership rate stands at 76.2%, with 68.4% of homeowners having mortgages.
26. Laredo, TX
Foreclosure rate: 1 in every 477 housing units
Change in foreclosures from Jan-Jun 2022: +16.6%
Laredo has a population of 266,963 with a median property value of $206,299. The homeownership rate is 62.7%, with 68% of owners having mortgages. The median household income is $54,618.
25. Canton-Massillon, OH
Foreclosure rate: 1 in every 475 housing units
Change in foreclosures from Jan-Jun 2022: 0.0%
Canton-Massillon, with a population of 401,578, has median property values of $190,569. The median household income in this area is $58,001. The homeownership rate for Canton-Massillon stands at 68.6%, with 63.9% of homes being mortgaged.
23. Bakersfield, CA
Foreclosure rate: 1 in every 473 housing units
Change in foreclosures from Jan-Jun 2022: -4.8%
Bakersfield, with a population of 905,644, registered median property values of $375,751. The median household income in the city was $58,824. The homeownership rate for Bakersfield stands at 59.3%, and 67% of homes in the city are mortgaged.
22. Jacksonville, NC
Foreclosure rate: 1 in every 465 housing units
Change in foreclosures from Jan-Jun 2022: -31.7%
Jacksonville is in 22nd place on our list of 30 US cities with the most foreclosures in 2023. With a population of 201,597, Jacksonville reported median property values of $293,901. The median household income was $54,732. The homeownership rate in Jacksonville stands at 56.8%, with 71.2% of homes being mortgaged.
21. Davenport-Moline-Rock Island, IA-IL
Foreclosure rate: 1 in every 464 housing units
Change in foreclosures from Jan-Jun 2022: +3%
The median property value for this area is $171,6310, and the median household income stands at $63,282. The homeownership rate is 70.7%, with 61.4% of homes being mortgaged.
20. Trenton, NJ
Foreclosure rate: 1 in every 456 housing units
Change in foreclosures from Jan-Jun 2022: -6.6%
Trenton, NJ, has a median property value of $305,957, while the median household income is $85,687. The homeownership rate is 63%, and 61.3% of homes have been mortgaged.
19. Ocala, FL
Foreclosure rate: 1 in every 435 housing units
Change in foreclosures from Jan-Jun 2022: +9.8%
The median property value in Ocala is around $298,900, and the median household income stands at $50,808. The homeownership rate in the city is 76.1%, with 65.9% of homes being mortgaged.
18. Baltimore-Columbia-Towson, MD
Foreclosure rate: 1 in every 431 housing units
Change in foreclosures from Jan-Jun 2022: +92.4%
This area has a median property value of $319,500, while household income stands at $87,513. The homeownership rate is 67%, with 66.3% of mortgaged homes.
17. Akron, OH
Foreclosure rate: 1 in every 430 housing units
Change in foreclosures from Jan-Jun 2022: -4.7%
Akron, OH, with a population of 702,464, reports median property values of $121,327. The median household income for the area is $63,331. The homeownership rate in the city is 67.6%, with 62.9% of homes being mortgaged. The city is at the seventeenth position in our list of 30 US cities with the most foreclosures in 2023.
16. Pensacola-Ferry Pass-Brent, FL
Foreclosure rate: 1 in every 428 housing units
Change in foreclosures from Jan-Jun 2022: +34.3%
This area has a population of 503,173 with median property values of $300,651. The median household income for the area stands at $63,860. The homeownership rate stands at 68.2%, with 69.3% of homes being mortgaged.
15. Orlando-Kissimmee-Sanford, FL
Foreclosure rate: 1 in every 428 housing units
Change in foreclosures from Jan-Jun 2022: +15.3%
The median property value in the area is around $388,423, with a median household income of $65,086. Meanwhile, the homeownership rate stands at 62.6%, with 67.6% of houses being mortgaged.
14. Las Vegas-Henderson-Paradise, NV
Foreclosure rate: 1 in every 424 housing units
Change in foreclosures from Jan-Jun 2022: +12.1%
The homeownership rate in this area is 55.4%, with 71.3% of homes having mortgages. Median property values were reported at $405,400, while the median household income for the region stands at $64,210.
13. Macon-Bibb, GA
Foreclosure rate: 1 in every 419 housing units
Change in foreclosures from Jan-Jun 2022: +4.2%
In Macon-Bibb, the median household income is $49,619, and the median property values are $176,406. The homeownership rate in this area stands at 62.2%, with 64.6% of homes being mortgaged.
12. Peoria, IL
Foreclosure rate: 1 in every 405 housing units
Change in foreclosures from Jan-Jun 2022: +13.4%
Peoria reports median property values of $114,414, accompanied by a median household income of $57,627. The homeownership rate in the city is 72.2%, with 62.5% of homes being mortgaged.
11. Spartanburg, SC
Foreclosure rate: 1 in every 399 housing units
Change in foreclosures from Jan-Jun 2022: +13.4%
Spartanburg, SC, with a population of 350,170, has reported a median property value of $249,500. The median household income for the area is $62,684. Furthermore, the homeownership rate in Spartanburg is 72.3%, with mortgages covering 67.7% of homes.
10. Elkhart-Goshen, IN
Foreclosure rate: 1 in every 395 housing units
Change in foreclosures from Jan-Jun 2022: +24.1%
This area, with a population of 206,314, has reported a median property value of $236,671. The median household income for the area is $61,182. The homeownership rate stands at 71.5%, with 66.8% of homes being mortgaged.
9. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
Foreclosure rate: 1 in every 394 housing units
Change in foreclosures from Jan-Jun 2022: +17.1%
This region has reported median property values of $343,940. The average household income for the area is $79,070. Meanwhile, the homeownership rate in this region is 67%, with 62.3% of homes being under mortgage.
8. Florence, SC
Foreclosure rate: 1 in every 391 housing units
Change in foreclosures from Jan-Jun 2022: +3.1%
In Florence, SC, median property values have been reported at $204,681. The median household income is $48,328. Florence has a homeownership rate of 66.2%, with 64.2% of homes being mortgaged.
7. Jacksonville, FL
Foreclosure rate: 1 in every 390 housing units
Change in Foreclosures from Jan-Jun 2022: +9.9%
Jacksonville, FL, is in seventh place on our list of 30 US cities with the most foreclosures in 2023. The median property value in Jacksonville is $310,000, and the average household income is $66,664. The homeownership rate stands at 65.2%, and 69.9% of homes are mortgaged.
6. Chicago-Naperville-Elgin, IL-IN-WI
Foreclosure rate: 1 in every 358 housing units
Change in Foreclosures from Jan-Jun 2022: -6.7%
In this area, the median property value stands at $305,079, and the household income is reported at $78,790. The homeownership rate is 65.1%, with a mortgage rate of 62.4%.
Some of the most valuable companies operating in the US real estate market include Equinix, Inc. (NASDAQ:EQIX), American Tower Corporation (NYSE:AMT), and Realty Income Corporation (NYSE:O).
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Disclosure: None. 30 US Cities With the Most Foreclosures in 2023 is originally published on Insider Monkey.
