Foreclosure, unemployment, and affordability pressures drove risk in key regions
Financial stress intensified for US homeowners in the second quarter of 2025, with new data from ATTOM revealing that southern and western counties dominated the list of the nation’s most vulnerable housing markets.
The report, which ranked 579 counties by affordability, foreclosure rates, underwater mortgages, and unemployment, found that 14 of the 50 riskiest counties were in California, seven in Florida, five in New Jersey, and four in Louisiana.
“Home prices were certainly eye-catching, but there are many factors that contribute to the health of a local housing market,” Rob Barber, CEO of ATTOM, said.
“Our index takes into account key indicators beyond just sales price to create a barometer that helps folks better understand where their market is headed.”
He added, “There’s uncertainty about how long prices can keep going up, and what will happen with the broader economy. That can be scary for owners and prospective buyers who don’t always get a full view of their market.”
Foreclosure and unemployment rates drive risk
The riskiest counties, including Charlotte County, FL; Humboldt County, CA; Shasta County, CA; Butte County, CA; and Cumberland County, NJ, were marked by both high foreclosure activity and unemployment rates above the June national average of 4.36%. Each also had at least one in every 766 homes in foreclosure.
In California, it was especially hard for people to afford homes. In Marin County, the cost of owning a home was almost 120% of what the average person earned in a year. Santa Cruz and San Luis Obispo counties also had home costs much higher than local incomes. Across the country, about 2.7% of homes were worth less than what was owed on them, but in some Louisiana parishes, like Rapides and Calcasieu, that number jumped to 17.3%, well above the national average.
Meanwhile, according to a new analysis released by Realtor.com, 26% of US homes—representing $12.7 trillion in real estate value—are exposed to severe or extreme risks from flooding, wildfire or hurricane winds. The findings highlight how climate change is reshaping housing markets nationwide and creating financial burdens for millions of homeowners.
Southern counties at both extremes
The South stood out not only for its concentration of high-risk counties but also for housing some of the least risky markets. Eighteen of the 50 most favorable counties were in the South, matched by 18 in the Northeast. New York and Wisconsin led with the highest counts of stable counties, while Virginia and New Hampshire also featured prominently.
Despite regional differences, affordability remained a challenge across the board: in 34 of the 50 least risky counties, homeownership still cost more than a third of annual wages. However, these counties generally benefited from lower foreclosure and unemployment rates, with Chittenden County, VT, and Cumberland County, ME, among those posting the healthiest metrics.
