Florida Ranks Among Highest States for Foreclosure Pressure — Even as Economy Remains Strong

Florida’s economy continues to post strong growth projections heading into 2026, but a new national report suggests a growing number of homeowners may be feeling pressure beneath the surface.

A study analyzing foreclosure risk across the country ranked Florida No. 2 nationwide for overall foreclosure pressure, combining active foreclosure activity with broader affordability challenges facing homeowners.

The report, produced by Washington-based Kind House Buyers using foreclosure filing data and housing cost burden metrics, found that one out of every 1,829 housing units in Florida currently faces foreclosure risk.

California ranked first on the index, followed closely by Florida, with Nevada, New York, and New Jersey rounding out the top five.

Unlike previous housing downturns tied primarily to unemployment or falling home prices, analysts say today’s foreclosure risk is being shaped by affordability pressures that build gradually over time.

According to the study, roughly 37.7% of Florida homeowners are considered cost-burdened, meaning housing expenses consume a significant portion of household income.

Insurance premiums, property taxes, and higher borrowing costs have combined to reshape monthly housing expenses across many parts of the state.

Even modest financial disruptions — unexpected medical bills, job changes, or rising escrow payments — can quickly create stress for homeowners already operating close to their financial limits.

Florida’s judicial foreclosure system, which often stretches cases over extended timelines, can also delay visible market impacts until pressure has already been building for months.

The findings arrive during a period when Florida’s broader economy continues expanding.

Business formation remains strong, population growth continues, and tourism demand across coastal regions has remained resilient.

That contrast highlights a complicated housing landscape.

High incomes and strong migration trends do not necessarily shield households from rising expenses when insurance costs, taxes, and mortgage payments increase faster than wages.

Recent national foreclosure data has shown filings rising year over year following pandemic-era moratoriums and forbearance programs that temporarily suppressed distressed inventory.

Analysts increasingly describe the current environment less as a crisis and more as a normalization phase after several years of unusually low foreclosure activity.

While the report evaluates statewide trends rather than individual counties, housing affordability conversations have increasingly surfaced across fast-growing coastal communities.

Areas experiencing rapid price appreciation during the pandemic migration wave are now adjusting to higher ownership costs tied to insurance markets and interest rates.

In regions like Southwest Florida, where seasonal ownership and second homes remain common, market shifts often appear unevenly across neighborhoods and property types.

Some homeowners continue benefiting from strong equity gains.

Others face rising carrying costs that were far lower when properties were originally purchased.

That divergence can create subtle changes in listing activity, resale timelines, and negotiation dynamics — factors closely watched by real estate professionals and lenders alike.

Despite the ranking, foreclosure activity nationally remains well below the levels seen during the 2008 housing crisis.

Property values across much of Florida have held firm compared to historic downturns, helping many homeowners maintain equity positions even amid higher expenses.

Still, affordability pressures are increasingly shaping housing conversations statewide.

As borrowing costs, insurance premiums, and living expenses continue evolving, foreclosure pressure indexes are becoming one of several indicators analysts use to measure financial resilience beneath otherwise strong economic headlines.

For now, Florida’s housing story remains one of growth alongside adjustment — a reminder that strong markets can still carry underlying challenges as conditions change.