Home foreclosures are on the rise again in the United States as Americans continue to struggle with the increasing cost of living and housing unaffordability.
That is according to a new report published by ATTOM, a real estate data provider. The firm's analysis found that there were 32,621 properties in May with foreclosure filings. These include default notices, scheduled auctions, and bank repossessions. That is 3% higher than the prior year, but it is down 7% from the same time last year.
"May's foreclosure activity highlights nuanced shifts in the housing market," ATTOM CEO Rob Barber said in the report. "While we observed a slight increase in foreclosure starts, the decline in completed foreclosures indicates resilience in certain areas."
Where Foreclosures Are on the Rise
Across the US, roughly one in every 4,320 housing units had a foreclosure filing in May. Among states, New Jersey had a foreclosure filing for about one in every 1,939 homes. That marks the highest foreclosure rate last month and is more than double the national average.
Following New Jersey is Delaware, with one in every 2,595 homes registered with foreclosure filings. Next on the list was Connecticut, with one for every 2,600, and Florida, with one for every 2,638.
Housing affordability in the country is the worst it has been in decades. The average house price in the first quarter of 2024 was $420,800, per the Federal Reserve Bank of St. Louis. Mortgage rates also remain elevated. The contract rate for a 30-year term is 6.95% while the rate for a 15-year term is 6.17% in the week ending June 13, according to Freddie Mac.
Further exacerbating the ongoing housing affordability crisis is the lack of supply in the housing market, which pushes home prices higher. Years of underbuilding and a pandemic-era homebuying boom led to a shortage of homes on the market. This was later exacerbated by the increasing cost of construction materials. Many have also been reluctant to sell amid elevated mortgage rates over the past three years.
Overall, these factors have helped to push the typical salary required in the US for homeownership to $106,500, according to Zillow.
