US Foreclosure Filings Rise 14% YoY in May 2026, Signaling Persistent Housing Strain Amid High Rates and Regional Pressures

ATTOM Data Solutions reported 40,355 U.S. properties with foreclosure filings in May 2026, down 5% month-over-month but up 14% from May 2025, continuing a year-long trend of annual increases. Foreclosure starts rose 13% year-over-year to 27,304, while completed foreclosures (REOs) increased 6% to 4,092. One in every 3,562 housing units nationwide faced a filing, with Florida showing the highest state rate (one in 2,110), followed by South Carolina, Maryland, Nevada, and Indiana. Metro areas like Cleveland, Baltimore, Tampa, Riverside, and Orlando led in rates.

This aligns with broader data: Q1 2026 saw 118,727 filings, up 26% YoY, with starts up 20% and REOs up 45%. Cotality noted the U.S. foreclosure inventory rate hit 0.4% in March 2026, its highest in six years. HousingWire and PR Newswire coverage echoed ATTOM CEO Rob Barber's assessment of ongoing pressures from mortgage rates above 6% since mid-2022, rising ownership costs, and affordability constraints—yet volumes remain below historical norms.

Nolo highlighted surging insurance premiums, HOA fees, property taxes, and reduced buyer demand as contributors to a growing crisis, particularly in high-tax or volatile economies like Las Vegas. These trends intersect with migration patterns, as inflows to states like Florida and Texas coincide with elevated foreclosure risks there. While optimistic reports emphasize market resilience, the consistent annual upticks—spanning 12+ months—point to structural debt burdens and localized deterioration not fully captured in aggregate resilience narratives.