The Blubber

New Jersey experienced the highest rate of foreclosures last month, with about one in every 1,939 homes receiving a foreclosure notice — more than double the national average.

Home foreclosures increased again in May as Americans continue to struggle with the ongoing cost-of-living crisis.

According to a new report from real estate data provider ATTOM, there were 32,621 properties in May with foreclosure filings, which include default notices, scheduled auctions, and bank repossessions. This represents a 3% increase from the previous month, although it is down 7% from the same time last year.

"May’s foreclosure activity highlights nuanced shifts in the housing market," said ATTOM CEO Rob Barber. "While we observed a slight increase in foreclosure starts, the decline in completed foreclosures indicates resilience in certain areas."

Nationwide, about one in every 4,320 housing units had a foreclosure filing in May, according to the report. However, the issue was more severe in several states. New Jersey had the highest rate of foreclosures last month, with about one in every 1,939 homes receiving a foreclosure notice—more than double the national average.

Delaware registered foreclosure filings for every 2,595 homes, Connecticut saw one for every 2,600, and Florida had one for every 2,638.

The situation could worsen as high home prices, steep mortgage rates, property taxes, and rising insurance premiums impact Americans.

Housing affordability is at its worst in decades, due to a spike in home prices and mortgage rates. Together, these factors have pushed the typical salary required nationwide for homeownership up to $106,500—a staggering 61% increase from the $59,000 required just four years ago, according to Zillow.

Several factors are driving the affordability crisis.

Years of underbuilding have led to a shortage of homes in the country, a problem exacerbated by the rapid rise in mortgage rates and the high cost of construction materials.

Available home supply remains down 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, according to a separate report from Realtor.com.