Florida Overtakes California as Riskiest Housing Market as Affordability Crisis Persists
Event summary
- Florida counties accounted for 16 of the 50 riskiest housing markets in Q4 2025, surpassing California's 11 counties.
- National median home price softened to $365,185 in Q4 2025, down $10,000 from prior quarter but still historically high.
- 55.7% of analyzed counties required residents to spend at least 33% of annual wages on home ownership costs.
- Foreclosure rates rose nationwide, with 1 in 1,274 homes in foreclosure in Q4 2025.
- National unemployment rate reached 4.5% in November 2025, with some counties exceeding 20%.
The big picture
ATTOM's Q4 2025 Housing Risk Report highlights a shifting landscape in U.S. housing markets, with Florida emerging as the new epicenter of risk. The data underscores persistent affordability challenges despite minor price corrections, compounded by rising foreclosure and unemployment rates. These trends suggest potential instability in high-risk markets, particularly in states with historically high home prices and weakening employment conditions.
What we're watching
- Affordability Crisis
- How sustained high home prices will impact buyer demand despite slight price softening.
- Foreclosure Trends
- Whether rising foreclosure rates signal broader market instability or normalization post-pandemic.
- Regional Disparities
- The pace at which Florida and other high-risk states address housing market vulnerabilities.
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