Foreclosure rates are on the rise nationwide, especially in Florida.
Read on to find out where Florida ranks nationally, some potential factors that may contribute to the increase and what these statistics mean for Floridians.
Where does Florida rank in foreclosures?
In the first half of 2022, the state had 17,624 homes in foreclosure, up 124.5% from the same time in 2021. According to ATTOM data, Florida ranks sixth in the country for foreclosures, at a rate of one foreclosure for every 560 homes.
Why is the foreclosure rate high?
Home foreclosure rates in recent years have been artificially low, due to federal foreclosure moratoriums designed to prevent struggling homeowners from losing their homes. This moratorium ended in the latter half of 2021, so there are significantly more foreclosures in the works than in 2020-2021. While the end of this government program has affected people in all states, Florida may be more affected due to the large population of the state, with Florida ranking third in the country for population size. With an increased cost of living and other economic woes, Floridians are falling behind on mortgage payments and are facing foreclosure.
What do these rates mean?
While some experts warn of a looming housing market decline, others are more optimistic. Some analysts hope to see foreclosure rates level out moving forward, suggesting that homeowners’ positive equity will allow them to sell for more money in a hot housing market and save them from foreclosure.
As one of the most populous states in the union facing financial difficulty, Florida continues to see increased foreclosure rates. There is, however, hope for a future decline in home foreclosures.