Foreclosures in the U.S. are up 26% from last year as inflation and rising costs catch up with homeowners.
Indiana has been hardest hit, with one foreclosure filing for every 739 homes in the first quarter of 2026, according to findings from real estate data firm Attom. That’s nearly two-thirds higher than the national rate of 1 in 1,211 homes facing foreclosure during the same period.
The latest data released in April shows that red states have been hardest hit by a sweeping affordability crisis, with economic woes at the forefront of many voters and policymakers as the 2026 midterm elections approach.
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The three states with the highest foreclosure rates in early 2026 all voted for President Donald Trump in the 2024 election. South Carolina ranks second behind Indiana, with one in every 743 homes going into foreclosure in the first quarter of this year, and Florida ranks third, with one in every 750 homes facing the same fate.
While foreclosure activity is on the rise across the United States, it remains well below levels seen during the 2008 housing crisis. But that won’t stop Democrats from piling on the issue, using affordability, inflation and rising housing costs as candidates’ main messages ahead of the November election.
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In the first quarter of 2026, a total of 118,727 properties were filed for foreclosure in the United States, an increase of 6% from the previous quarter and an increase of 26% from the same period last year.
There were 45,921 foreclosure filings in March alone, an 18% increase from February and a 28% increase from last March.
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Looking more closely at the data, more homes are entering the foreclosure process, a potential sign of trouble ahead. In the first quarter of 2026, foreclosures began on 82,631 properties, a 20% increase from the previous year, while lenders repossessed 14,020 properties, a 45% increase from the prior year.
Blue states like Delaware and Illinois also face high foreclosure rates, suggesting the issue cuts across party lines. Among major metropolitan areas, there are cities such as Cleveland, Ohio; Jacksonville, Florida; and Indianapolis, Indiana, which have some of the highest foreclosure rates.
The surge in foreclosure rates comes as the United States grapples with a host of issues. housing challenges These have contributed to today’s crisis.
Against that backdrop, experts say rising mortgage rates, rising costs of living and other home-buying expenses are putting increasing pressure on some homeowners, pushing up monthly payments and making it harder for them to keep up with housing costs.
