Foreclosure Trends in Florida
1. Florida is among the national hotspots for foreclosures
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In July 2025, Florida ranked second nationwide, with a foreclosure rate of one in every 2,420 housing units—only surpassed by Nevada. That month, 4,166 properties entered the foreclosure process ATTOMRISMedia.
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For the first half of 2025, Florida recorded 15,198 foreclosure starts, placing it just behind Texas, which had 17,680 PR Newswire.
2. Severe housing market corrections, particularly in Cape Coral–Fort Myers
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Cape Coral has become one of the worst housing markets in the country. The metro area saw median home prices drop 11% over two years, with 52% of listed homes marked down and nearly 8% of homeowners underwater on their mortgages Wall Street Journal.
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The decline is fueled by a combination of overbuilding, dwindling investor interest, soaring insurance premiums, strict regulatory changes post–hurricane seasons, and weak job markets Wall Street Journal.
3. Strained homeowners due to rising insurance and condo repair costs
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In South Florida, foreclosure filings spiked significantly. For instance:
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Miami-Dade: 422 homes entered foreclosure—one in every 2,604 units—marking a 23% monthly increase and 8.4% year-over-year Discover South Florida.
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Palm Beach: Foreclosures increased 31.6% year-over-year and 16.4% month-over-month Discover South Florida.
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Rising homeowners’ insurance costs are a major culprit. From 2022 to 2024, premiums soared by 20% nationally, with another 8% increase projected in 2025 MarketWatch. In Florida, this has led to growing delinquencies, particularly among FHA borrowers with limited financial flexibility MarketWatch.
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Additionally, Florida faces a mounting condo crisis. The Building Safety Act, passed in response to the 2021 Champlain Towers South collapse, requires extensive structural repairs for older buildings. Many condo owners—especially retirees—are burdened with massive special assessments (often six-figure sums), causing property values to plummet and reducing market activity
