Overall, 40,277 properties were involved in foreclosure filings in August—up 1% from July 2026 and 13% from August 2025—according to the August 2026 U.S. Foreclosure Market Report released by property data provider ATTOM. These properties either received default notices, were scheduled for auction, or were repossessed by banks.

“August’s data shows that foreclosure activity continues to trend above year-ago levels, particularly in completed foreclosures, which saw a notable annual increase,” said Rob Barber, CEO of ATTOM. He noted that “overall foreclosure volumes remain well below historical norms and the broader housing market continues to demonstrate resilience.”

On the state level, Florida led the nation in new foreclosure starts with 3,189 filings, followed closely by Texas with 3,126 starts and California with 2,565 starts. Illinois and Georgia rounded out the top five states for foreclosure starts, recording 1,192 and 1,189 starts, respectively.

Meanwhile, South Carolina, Nevada, and Florida had the highest per capita foreclosure rates. South Carolina had 1 filing for every 1,547 housing units, Nevada had 1 filing for every 1,920 housing units, and Florida saw a foreclosure start rate of 1 in every 2,397 housing units.

Texas and Maryland completed the top five states with the highest overall concentration of distress, recording 1 foreclosure filing for every 2,445 and 2,530 housing units, respectively. Nationally, 1 in every 3,569 housing units had a foreclosure filing in August 2026.

Among major metro areas with populations of at least 200,000, Columbia, SC, had the highest foreclosure rate in the country, with 1 foreclosure filing for every 1,232 housing units.

Punta Gorda, FL—the metro with the highest foreclosure rate in July—followed closely, with 1 filing for every 1,249 housing units. Spartanburg, SC, saw 1 foreclosure for every 1,262 units; Fayetteville, NC, had 1 for every 1,458 units; and Charleston, SC, had 1 for every 1,501 units.

Some metro areas recorded foreclosure declines, however. Among metropolitan areas with populations of at least 200,000 and at least 50 foreclosure starts, Cleveland saw the largest year-over-year decline, dropping from 281 starts in August 2025 to 175 in August 2026. Other notable metro areas seeing declines included Washington, DC; Providence, RI; Raleigh, NC; and Kansas City, MO.

Builders appear to be proceeding with caution as they gauge demand for new homes — but if the residential construction industry is going to see momentum anytime soon, it will need to catch a break on the current cost environment that is pressuring builders and consumers alike.

Single-family housing starts rise: Overall housing starts in August fell 2.6% compared to July, according to the U.S. Census Bureau. However, single-family home starts were up 7.6% month-over-month and up 5.2% compared to a year ago, with the seasonally adjusted annualized rate coming in at 918,000. 

The past six months of data suggest that housing starts have stabilized, though new home construction permits and completions continue to trend lower, according to Mark Fleming, chief economist at First American.

"Permits lead actual construction, so the August data suggests builders are modestly tightening the construction pipeline while cautiously starting to build already permitted projects," Fleming said. 

As is the case with the existing home market, elevated mortgage rates and high home prices are creating headwinds for consumer demand. "For homebuilding to regain momentum, builders need some improvement in affordability and relief from the costs that continue to squeeze new construction," Fleming said.

Builders remain pessimistic: Builder confidence in September fell three points to 32 — the lowest level since this time last year, according to the National Association of Home Builders' (NAHB) latest Housing Market Index. The monthly gauge has stayed below 50 for over two years.

The NAHB noted that 38% of home builders cut prices this month, a small uptick from 35% in August, though the average price cut held at 6%. Two-thirds of builders also reported that they are offering incentives in an effort to entice buyers.

"Buyer traffic has weakened across much of the country, largely because of rising mortgage rates," NAHB Chief Economist Robert Dietz wrote in a Sept. 16 blog post. "Builders also continue to face higher material costs, rising gas and diesel prices and persistent labor shortages. In some markets, builders report that increased immigration enforcement is discouraging legal workers from reporting to job sites."

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Realtor.com
By Tristen Navera

California Gov. Gavin Newsom signed into law a spate of bills to reform the state's wildfire insurance sector, after consumer fallout from the catastrophic Eaton and Palisades fires of early 2025.

The four bills signed in Sacramento on Tuesday are aimed at adding consumer protections for wildfire survivors. The state's home insurance crisis is especially acute as thousands of homes are at high wildfire risk.

Two of the bills aim to codify protections and remediation for smoke damage, and two more give wildfire survivors more leeway to seek mortgage forbearance on homes that are rendered uninhabitable by wildfires.

Increasingly damaging wildfires have resulted in a fraught situation for California, where insurers paid over $22.4 billion in claims in 2024. The state is investigating two insurers, alleging they systematically delayed and underpaid claims. One of theme, State Farm, has called the state's insurance marketplace "dysfunctional."

"We are continuing to listen, act, and stand alongside the families and communities rebuilding after the Eaton and Palisades fires," Newsom said at a press event. "These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most."

"We are continuing to listen, act, and stand alongside the families and communities rebuilding after the Eaton and Palisades fires," Newsom said at a press event. "These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most."

The Palisades and Altadena fires in January 2025 destroyed 16,000 structures, including 12,000 homes, causing upward of $131 billion in property and capital losses.

Even President Donald Trump was critical of the insurers, singling out State Farm and others and calling them "horrendous" for allegedly not paying out to Californians who'd spent years paying premiums.

Mortgage and insurance reforms

Two of the bills, AB-1642 and AB-1795, create standards for smoke damage claims. California could be the first in the nation with this kind of standard, the governor said. Some 13,000 of the 40,000 home insurance claims from the Palisades and Altadena fires involved smoke-damaged homes that didn't burn.

California's Department of Toxic Substances Control and the California Air Resources Board will also develop standards for the testing and remediation of lead and asbestos contamination from wildfires. Insurers would need to pay for cleanup.

“AB-1642 will set a new national precedent on scientific standards for clearing a home for occupancy after a wildfire," Assemblymember John Harabedian (D-Pasadena) said in a statement. "Science, not an insurance company’s opinions, will determine whether a home is safe."

Two other bills, AB-1842 and AB-1847, address mortgage forbearance. The first would let homeowners in a federally declared disaster zone request a 12-month forbearance on a residential mortgage loan. That would enshrine a protection homeowners got after the wildfires. The second doubles the mortgage forbearance window available by law for L.A. fire survivors for up to two years.

The Golden State has three more pending bills that offer further insurance reforms. The Legislature passed them all last week and sent them to Newsom's desk.

SB-876 would add new requirements for insurers to handle claims more quickly in a declared emergency. It would also increase penalties for violations of fair claims practices. SB-877 is aimed at speeding the times for insurers to provide documents related to claims. SB-878 requires those insurers to provide compliance data on their payouts, starting in 2028.

The measures come as California Insurance Commissioner Ricardo Lara reviewed over 2,000 complaints from homeowners about delays and denials in insurance payouts.
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