The foreclosure rate in the United States has experienced significant fluctuations over the past two decades, reaching its peak in 2010 at **** percent following the financial crisis. Since then, the rate has steadily declined, with a notable drop to **** percent in 2021 due to government interventions during the COVID-19 pandemic. In 2024, the rate stood slightly higher at **** percent but remained well below historical averages, indicating a relatively stable housing market. Impact of economic conditions on foreclosures The foreclosure rate is closely tied to broader economic trends and housing market conditions. During the aftermath of the 2008 financial crisis, the share of non-performing mortgage loans climbed significantly, with loans 90 to 180 days past due reaching *** percent. Since then, the share of seriously delinquent loans has dropped notably, demonstrating a substantial improvement in mortgage performance. Among other things, the improved mortgage performance has to do with changes in the mortgage approval process. Homebuyers are subject to much stricter lending standards, such as higher credit score requirements. These changes ensure that borrowers can meet their payment obligations and are at a lower risk of defaulting and losing their home. Challenges for potential homebuyers Despite the low foreclosure rates, potential homebuyers face significant challenges in the current market. Homebuyer sentiment worsened substantially in 2021 and remained low across all age groups through 2024, with the 45 to 64 age group expressing the most negative outlook. Factors contributing to this sentiment include high housing costs and various financial obligations. For instance, in 2023, ** percent of non-homeowners reported that student loan expenses hindered their ability to save for a down payment.

Between 2015 and 2017, Memphis, Tennessee had the highest eviction rate at *** percent. The metropolitan areas with the next highest eviction rates were Phoenix (Arizona), Atlanta (Georgia), Indianapolis (Indiana) and Dallas (Texas) in that period.

Why do evictions occur? Eviction rate refers to the share of renters who are legally removed from a rental property by their landlord, because rent is overdue, the tenant has breached a condition of the rental agreement or for other legally permitted reasons.

Higher rates in the South and Midwest Eviction rates tend to be higher in the South and Midwest of the country, because median incomes are low and foreclosure rates are high. Vacancy rates are consistently higher in the South and Midwest than in the Northeast and West, which means that landlords cannot afford to be as picky when choosing a tenant in the South and Midwest. Tenants who struggle to pay their rent have a much lower chance of being chosen as tenant in the more competitive rental markets, which also keeps the eviction rates lower in those areas.