US home foreclosures rise 26% YoY in Q1 2026, highest level in six years
US foreclosure filings surged 26% year-over-year in Q1 2026, reaching 118,727 properties, the highest level in six years, driven by rising property taxes and insurance costs. Indiana, South Carolina, and Florida saw the most activity, with foreclosure starts up 20% and completed foreclosures up 45% compared to Q1 2025, though levels remain below the 2008 financial crisis peak.
US foreclosure activity hit a six-year high in the first quarter of 2026, with 118,727 properties receiving filings—a 26% increase from Q1 2025, according to ATTOM Data’s Q1 2026 report released April 16. The rise stems from climbing property taxes and insurance premiums, rather than complex financial instruments or subprime lending resurgence. Foreclosure starts, the initial legal filings, totaled 82,631 in Q1, a 20% year-over-year jump, while completed foreclosures—where banks take ownership—rose 45% compared to the same period last year. Geographically, Indiana led with the highest foreclosure rate at 1 in 739 housing units, followed by South Carolina and Florida, with the national average at 1 in 1,211 units. The data reflects a return to pre-pandemic norms after federal moratoriums and forbearance programs suppressed foreclosures during the COVID-19 era. Unlike the 2007-2008 crisis, today’s conditions lack widespread subprime lending or negative equity, though homeowner equity has rebounded post-pandemic. For investors, the concentration in states like Indiana and Florida may create localized price pressure as distressed properties enter the market. ATTOM CEO Rob Barber noted financial strain on homeowners but emphasized broader market stabilization, with foreclosure starts increasing 20% year-over-year, suggesting potential further rises in completed foreclosures in coming quarters.
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