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Unveiling Foreclosure Rates 2023: A 50-State Analysis and Its Impact on Real Estate Investment: The real estate market is a dynamic entity, constantly influenced by a myriad of factors. One such factor that significantly impacts the market is foreclosure rates. As we navigate through 2023, it’s crucial for real estate investors to understand the current foreclosure landscape across the United States. This article will provide a comprehensive analysis of foreclosure rates in all 50 states and discuss their impact on real estate investment.
☛ Understanding Foreclosure Rates
Foreclosure is a legal process that occurs when a homeowner fails to make mortgage payments, leading the lender to seize the property. The foreclosure rate is a key indicator of the health of the housing market and the broader economy. High foreclosure rates can indicate economic distress, while low rates often signal a robust economy.
☛ Foreclosure Rates in 2023: A 50-State Analysis:
Despite a slight dip in recent months, foreclosure rates in the U.S. are continuing to rise annually. According to property data provider ATTOM, the number of housing units with foreclosure filings in April 2023 was 32,977, a nearly 8% increase from the previous year. The expiration of COVID-era government programs such as foreclosure moratoriums and loan forbearance has largely influenced this rise in numbers, which has left many homeowners without any recourse.
With the U.S. median home price hovering around $380,000, home ownership is becoming increasingly difficult for new buyers and existing owners alike. High mortgage interest rates are exacerbating the situation, with the interest rate for a 30-year fixed mortgage lingering near 6.39% as of May 18th, 2023.
The Federal Reserve has been working to combat inflation by raising interest rates, but these hikes are also causing mortgage rates to rise, making it more expensive to finance a home or refinance an existing mortgage. Borrowers are advised to stay informed about their mortgage payments and to work closely with their lenders to explore options for assistance if needed.
☛ Foreclosure Rates By State:
Now, let’s delve into the foreclosure rates in each state, starting with those with the lowest rates and progressing to those with the highest.
☛ (#1)Illinois:
The Land of Lincoln has once again claimed the first spot for the highest foreclosure rate. Of its 5,412,995 homes, 2,437 went into foreclosure, making the state’s foreclosure rate one in every 2,221.
Counties with the most foreclosures: Dewitt, Stark, St. Clair, Livingston, and Will.
☛ (#2)Maryland:
Ranked 18th for the most populous state, Maryland placed second for the highest foreclosure rate in April. With a total of 2,516,341 housing units, of which 1,102 went into foreclosure, the state’s foreclosure rate was one in every 2,283 households.
Counties with the most foreclosures: Charles, Prince George’s County, Cecil, Calvert, and Kent.
☛ (#3)New Jersey:
With a foreclosure rate of one in every 2,334 homes, the Garden State placed third for the highest foreclosure rate in April. The state contains 3,738,342 housing units, of which 1,602 went into foreclosure.
Counties with the most foreclosures: Camden, Cumberland, Atlantic, Burlington, and Sussex.
☛ (#4)South Carolina:
The 23rd most populous state had the fourth highest foreclosure rate with one in every 2,495 homes going into foreclosure. Of the Palmetto State’s 2,325,248 housing units, 932 were foreclosed on this month.
Counties with the most foreclosures: Kershaw, Dorchester, Fairfield, Williamsburg, and Richland.
☛ (#5)Delaware:
The sixth-least populous state in the country, Delaware took fifth place this month. With one in every 2,603 homes going into foreclosure and a total of 445,104 housing units, the state saw 171 foreclosures filed.
Counties with the most foreclosures: Kent, New Castle, and Sussex.
☛ (#6)Ohio:
With a total of 5,232,733 housing units, Ohio had a foreclosure rate of one in every 2,728 homes. The state saw 1,918 foreclosures filed.
Counties with the most foreclosures: Cuyahoga, Auglaize, Huron, Butler, and Lucas.
☛ (#7)Florida:
With a total of 9,764,897 housing units, Florida had a foreclosure rate of one in every 2,894 homes. The state saw 3,374 homes go into foreclosure this month.
Counties with the most foreclosures: Osceola, Hamilton, Polk, Duval, and Gadsden.
☛ (#8)Nevada:
With a total of 1,269,846 housing units, Nevada had a foreclosure rate of one in every 2,899 homes. The state saw 438 foreclosures filed.
Counties with the most foreclosures: Clark, Nye, Humboldt, Lyon, and Washoe.
☛ (#9)District of Columbia:
With a total of 344,306 housing units, the District of Columbia had a foreclosure rate of one in every 3,020 homes. The district saw 114 homes go into foreclosure this month.
☛ (#10)Indiana:
With a total of 2,911,562 housing units, Indiana had a foreclosure rate of one in every 3,546 homes. The state saw 821 foreclosures filed.
Counties with the most foreclosures: Starke, Wayne, Jasper, Grant, and Delaware.
☛ (#11)Iowa:
With a total of 1,409,100 housing units, Iowa had a foreclosure rate of one in every 3,571 homes. The state saw 394 foreclosures filed.
Counties with the most foreclosures: Jasper, Tama, Lucas, Lee, and Union.
☛ (#12)Pennsylvania:
With a total of 5,728,788 housing units, Pennsylvania had a foreclosure rate of one in every 3,937 homes. The state saw 1,455 foreclosures filed.
Counties with the most foreclosures: Delaware, Philadelphia, Berks, Montgomery, and Susquehanna.
☛ (#13)California:
With a total of 14,328,539 housing units, California had a foreclosure rate of one in every 3,976 homes. The state saw 3,604 foreclosures filed.
Counties with the most foreclosures: Lake, Humboldt, Shasta, Riverside, and Siskiyou.
☛ (#14)Alaska:
With a total of 315,797 housing units, Alaska had a foreclosure rate of one in every 3,997 homes. The state saw 79 foreclosures filed.
Counties with the most foreclosures: Kodiak Island, Ketchikan Gateway, Matanuska-Susitna, Anchorage, and Kenai Peninsula.
☛ (#15)New Mexico:
With a total of 937,397 housing units, New Mexico had a foreclosure rate of one in every 4,023 homes. The state saw 233 foreclosures filed.
Counties with the most foreclosures: Otero, Eddy, Chaves, San Juan, and Dona Ana.
☛ (#16)New York:
With a total of 8,449,178 housing units, New York had a foreclosure rate of one in every 4,122 homes. The state saw 2,050 foreclosures filed.
Counties with the most foreclosures: Orange, Nassau, Putnam, Richmond, and Suffolk.
☛ (#17)Georgia:
With a total of 4,375,039 housing units, Georgia had a foreclosure rate of one in every 4,195 homes. The state saw 1,043 foreclosures filed.
Counties with the most foreclosures: Irwin, Taliaferro, Pulaski, Lamar, and Warren.
☛ (#18)Michigan:
With a total of 4,566,504 housing units, Michigan had a foreclosure rate of one in every 4,256 homes. The state saw 1,073 foreclosures filed.
Counties with the most foreclosures: Shiawassee, Lapeer, Lenawee, Montcalm, and Eaton.
☛ (#19)Louisiana:
With a total of 2,066,323 housing units, Louisiana had a foreclosure rate of one in every 4,260 homes. The state saw 485 foreclosures filed.
Counties with the most foreclosures: Tangipahoa, Livingston, Beauregard, Washington, and Plaquemines.
☛ (#20)North Carolina:
With a total of 4,673,933 housing units, North Carolina had a foreclosure rate of one in every 4,555 homes. The state saw 1,026 foreclosures filed.
Counties with the most foreclosures: Tyrrell, Gates, Camden, Nash, and Jones.
☛ (#21)Oklahoma:
With a total of 1,741,721 housing units, Oklahoma had a foreclosure rate of one in every 4,620 homes. The state saw 377 foreclosures filed.
Counties with the most foreclosures: Canadian, Garfield, Dewey, Grady, and Logan.
☛ (#22)Hawaii:
(#22)Texas: With a total of 11,433,880 housing units, Texas had a foreclosure rate of one in every 4,686 homes. The state saw 2,440 foreclosures filed.
Counties with the most foreclosures: Kaufman, Liberty, Tom Green, Scurry, and Atascosa.
☛ (#23)Connecticut:
With a total of 1,527,039 housing units, Connecticut had a foreclosure rate of one in every 4,817 homes. The state saw 317 foreclosures filed.
Counties with the most foreclosures: Windham, Litchfield, Hartford, New London, and Fairfield.
☛ (#24)Hawaii:
With a total of 556,937 housing units, Hawaii had a foreclosure rate of one in every 5,532 homes. The state saw 152 foreclosures filed.
Counties with the most foreclosures: Hawaii, Honolulu, and Maui.
☛ (#25)Nebraska:
With a total of 840,802 housing units, Nebraska had a foreclosure rate of one in every 5,532 homes. The state saw 152 foreclosures filed.
Counties with the most foreclosures: Red Willow, York, Hamilton, Scotts Bluff, and Hitchcock.
☛ (#26)Arizona:
With a total of 3,056,890 housing units, Arizona had a foreclosure rate of one in every 5,650 homes. The state saw 541 foreclosures filed.
Counties with the most foreclosures: Graham, Santa Cruz, Pinal, Cochise, and Yuma.
☛ (#27)Maine:
With a total of 737,782 housing units, Maine had a foreclosure rate of one in every 6,047 homes. The state saw 122 foreclosures filed.
Counties with the most foreclosures: Piscataquis, Penobscot, Franklin, Androscoggin, and Somerset.
☛ (#28)Arkansas:
With a total of 1,361,880 housing units, Arkansas had a foreclosure rate of one in every 6,135 homes. The state saw 222 foreclosures filed.
Counties with the most foreclosures: Dallas, Calhoun, Clay, Howard, and Poinsett.
☛ (#29)Utah:
With a total of 1,133,558 housing units, Utah had a foreclosure rate of one in every 6,477 homes. The state saw 175 foreclosures filed.
Counties with the most foreclosures: Box Elder, Carbon, Tooele, Utah, and Juab.
☛ (#30)Colorado:
With a total of 2,454,873 housing units, Colorado had a foreclosure rate of one in every 6,512 homes. The state saw 377 foreclosures filed.
Counties with the most foreclosures: Logan, Prowers, Bent, Pueblo, and Fremont.
☛ (#31)Minnesota:
With a total of 2,470,483 housing units, Minnesota had a foreclosure rate of one in every 6,536 homes. The state saw 378 foreclosures filed.
Counties with the most foreclosures: Sherburne, Chisago, Faribault, Cottonwood, and Steele.
☛ (#32)Idaho:
With a total of 742,145 housing units, Idaho had a foreclosure rate of one in every 6,686 homes. The state saw 111 foreclosures filed.
Counties with the most foreclosures: Minidoka, Power, Gooding, Payette, and Bonneville.
☛ (#33)Virginia:
With a total of 3,596,100 housing units, Virginia had a foreclosure rate of one in every 7,079 homes. The state saw 508 foreclosures filed.
Counties with the most foreclosures: Surry, Covington City, Galax City, Franklin City, and Hopewell City.
☛ (#34)Alabama:
With a total of 2,278,526 housing units, Alabama had a foreclosure rate of one in every 7,233 homes. The state saw 315 foreclosures filed.
Counties with the most foreclosures: Calhoun, Henry, Monroe, Washington, and Clarke.
☛ (#35)Tennessee:
With a total of 3,011,124 housing units, Tennessee had a foreclosure rate of one in every 7,238 homes. The state saw 416 foreclosures filed.
Counties with the most foreclosures: Hancock, Rhea, Monroe, McNairy, and Fentress.
☛ (#36)Missouri:
With a total of 2,782,081 housing units, Missouri had a foreclosure rate of one in every 7,321 homes. The state saw 380 foreclosures filed.
Counties with the most foreclosures: Webster, Dent, Barton, Mississippi, and Moniteau.
☛ (#37)Mississippi:
With a total of 1,317,375 housing units, Mississippi had a foreclosure rate of one in every 8,033 homes. The state saw 164 foreclosures filed.
Counties with the most foreclosures: Clay, Itawamba, Simpson, Copiah, and Leflore.
☛ (#38)New Hampshire:
With a total of 636,480 housing units, New Hampshire had a foreclosure rate of one in every 8,160 homes. The state saw 78 foreclosures filed.
Counties with the most foreclosures: Strafford, Grafton, Rockingham, Coos, and Hillsborough.
☛ (#39)Wisconsin:
With a total of 2,718,369 housing units, Wisconsin had a foreclosure rate of one in every 9,153 homes. The state saw 297 foreclosures filed.
Counties with the most foreclosures: Douglas, Dodge, Kenosha, Marquette, and Juneau.
☛ (#40)Oregon:
With a total of 1,798,864 housing units, Oregon had a foreclosure rate of one in every 9,225 homes. The state saw 195 foreclosures filed.
Counties with the most foreclosures: Malheur, Lake, Tillamook, Columbia, and Crook.
☛ (#41)Wyoming:
With a total of 271,818 housing units, Wyoming had a foreclosure rate of one in every 10,067 homes. The state saw 27 foreclosures filed.
Counties with the most foreclosures: Converse, Weston, Carbon, Uinta, and Campbell.
☛ (#42)West Virginia:
With a total of 859,437 housing units, West Virginia had a foreclosure rate of one in every 11,459 homes. The state saw 75 foreclosures filed.
Counties with the most foreclosures: Pleasants, Randolph, Kanawha, Marshall, and Ohio.
☛ (#43)Massachusetts:
With a total of 2,979,634 housing units, Massachusetts had a foreclosure rate of one in every 11,824 homes. The state saw 252 homes go into foreclosure this month.
Counties with the most foreclosures: Plymouth, Franklin, Hampden, Berkshire, and Worcester.
☛ (#44)Washington:
With a total of 3,170,695 housing units, Washington had a foreclosure rate of one in every 11,920 homes. The state saw 266 homes go into foreclosure this month.
Counties with the most foreclosures: Chelan, Lincoln, Cowlitz, Island, and Kitsap.
☛ (#45)Kentucky:
With a total of 1,988,420 housing units, Kentucky had a foreclosure rate of one in every 12,585 homes. The state saw 158 homes go into foreclosure this month.
Counties with the most foreclosures: Hardin, Carroll, Union, Kenton, and Boyd.
☛ (#46)Rhode Island:
With a total of 481,168 housing units, Rhode Island had a foreclosure rate of one in every 14,581 homes. The state saw 33 homes go into foreclosure this month.
Counties with the most foreclosures: Providence, Newport, and Kent.
☛ (#47)Kansas:
With a total of 1,272,290 housing units, Kansas had a foreclosure rate of one in every 15,516 homes. The state saw 82 homes go into foreclosure this month.
Counties with the most foreclosures: Scott, Brown, Stafford, Franklin, and Barber.
☛ (#48)North Dakota:
With a total of 370,111 housing units, North Dakota had a foreclosure rate of one in every 16,823 homes. The state saw 22 homes go into foreclosure this month.
Counties with the most foreclosures: Williams, Ward, Stutsman, Morton, and Stark.
☛ (#49)Montana:
With a total of 512,553 housing units, Montana had a foreclosure rate of one in every 17,674 homes. The state saw 29 homes go into foreclosure this month.
Counties with the most foreclosures: Fallon, Powell, Lincoln, Roosevelt, and Custer.
☛ (#50)Vermont:
With a total of 333,519 housing units, Vermont had a foreclosure rate of one in every 37,058 homes. The state saw 9 homes go into foreclosure this month.
Counties with the most foreclosures: Washington, Rutland, Franklin, Windham, and Chittenden.
☛ (#51)South Dakota:
With a total of 388,373 housing units, South Dakota had a foreclosure rate of one in every 55,482 homes. The state saw 7 homes go into foreclosure this month.
Counties with the most foreclosures: Meade, Codington, Minnehaha, and Lincoln.
☛ Impact on Real Estate Investment
Foreclosure rates can have a significant impact on real estate investment. High foreclosure rates can lead to an increase in the supply of properties on the market, which can drive down prices and create opportunities for investors to purchase properties at a discount. However, it’s important to note that investing in foreclosed properties comes with its own set of challenges, including potential repair costs and the risk of the property being in a distressed market.
On the other hand, low foreclosure rates can indicate a healthy real estate market, which can lead to higher property values and increased competition among buyers. This can be beneficial for investors who already own properties and are looking to sell or rent them out.
In 2023, the rising foreclosure rates present both opportunities and challenges for real estate investors. Here are a few strategies to consider:
☛ Buy and Hold:
In states with high foreclosure rates, investors may find opportunities to purchase properties at a discount. These properties can be held and rented out, providing a steady stream of income. Over time, as the market recovers, these properties may also appreciate in value.
☛ Fix and Flip:
This strategy involves buying a foreclosed property, renovating it, and selling it for a profit. This can be a profitable strategy in areas where there is demand for housing, but it requires a significant amount of time and money.
☛ Wholesale:
Wholesaling involves finding a distressed property, putting it under contract, and then selling that contract to another investor. This can be a good strategy for those who want to get involved in real estate investing but don’t have a lot of capital to start with.
☛ Short Sales:
In a short sale, the homeowner sells the property for less than the amount owed on the mortgage. This can be a win-win situation for the homeowner, who avoids foreclosure, and the investor, who can often purchase the property at a discount.
☛ Final Thoughts
Understanding foreclosure rates and their impact on the real estate market is crucial for investors. As we’ve seen, foreclosure rates can vary greatly from state to state, and understanding these differences can help investors identify opportunities and risks. By staying informed and being strategic, investors can navigate the changing landscape of the real estate market and make sound investment decisions.
Remember, real estate investing is not a get-rich-quick scheme. It requires patience, diligence, and a thorough understanding of the market. But with the right approach, it can be a rewarding and profitable venture. As always, it’s recommended to seek advice from a real estate professional or financial advisor before making any investment decisions.
