State Ranks Among Top 10 for Foreclosures, Atlantic City Sees Highest Metro Area Rate
Foreclosure activity in New Jersey and across the United States rose notably in 2025, signaling a market recalibration after years of historically low default levels. According to recent data, foreclosure filings—including notices of default, scheduled auctions, and bank repossessions—were reported on 367,460 properties nationwide, a 14% increase from 2024 and a 3% rise compared to 2023. While these numbers reflect an upward trend, analysts emphasize that activity remains far below pre-pandemic norms and is only a fraction of the levels seen during the last housing crisis.
New Jersey emerged as one of the top 10 states with the highest foreclosure rates, recording the state’s largest December rate in 2025. In practical terms, one in every 273 housing units statewide received a foreclosure filing last year. The data highlight concentrated challenges in urban areas, with Atlantic City standing out as one of the 225 metropolitan statistical areas (MSAs) with populations above 200,000 that experienced the worst foreclosure rates. In Atlantic City, one in every 192 housing units faced a foreclosure filing during the year.
Experts describe the rise in foreclosures as part of a market correction rather than a sign of widespread homeowner distress. Robust equity positions, conservative lending practices, and historically strong demand have continued to mitigate the risk of large-scale mortgage failures. Rob Barber, CEO of ATTOM, the real estate analytics firm compiling the data, noted that the increase reflects a “continued normalization of the housing market following several years of historically low levels,” with the current uptick driven more by shifts in property valuations and mortgage terms than by financial crises among homeowners.
Across the nation, states with the most significant foreclosure activity included Florida, where one in every 230 housing units received a filing, and Delaware, South Carolina, Illinois, and Nevada, all reporting ratios higher than one in every 240 homes. Following these states, New Jersey’s rate placed it eighth nationally, above Indiana, Ohio, Texas, and Maryland.
Metro areas tell a similar story of uneven impacts. Alongside Atlantic City, cities such as Lakeland, Fla. (one in every 145 units), Columbia, S.C. (one in every 165 units), Cleveland (one in every 187 units), and Cape Coral, Fla. (one in every 189 units) ranked among the top five with the highest foreclosure ratios. These figures underscore how regional housing markets continue to experience varying pressures, influenced by factors such as local employment trends, property values, and investor activity.
For homeowners, investors, and prospective buyers, the 2025 data signal both caution and opportunity. Rising foreclosure activity may create openings for property investment, while also reminding owners of the importance of maintaining strong equity positions and staying current on mortgage obligations. Analysts suggest that understanding these patterns will be key for those navigating New Jersey’s evolving real estate landscape, where selective market pressures are increasingly shaping pricing, availability, and investment decisions.
Overall, the increase in foreclosure filings represents a market in transition rather than crisis. With prudent lending, continued homeowner equity, and careful monitoring of property markets, New Jersey and other affected areas appear well-positioned to weather the 2025 adjustments while avoiding the widespread instability seen in prior housing downturns.
