UNITED STATES—In California, rising home prices and high property taxes are making things difficult for homeowners. With 41.10% of residents burdened by housing costs and 1 in every 3,407 homes facing foreclosure, many Golden State homeowners are teetering on the edge of financial distress.

The research, conducted by Tacoma-based house-buying company Kind House Buyers, analyzed foreclosure activity and housing affordability data across all 50 U.S. states, combining state-level foreclosure rates with housing cost burden metrics to assess homeowner risk. ATTOM Data’s October 2025 Foreclosure by State report provided the foreclosure data, and America’s Health Rankings provided the housing cost burden figures. Analysts weighted and normalized these measures to create a Foreclosure Pressure Index, which highlights where homeowners face the greatest combined risk from both active foreclosure filings and underlying affordability strain, rather than looking at either factor in isolation.

Top 10 U.S. States With the Highest Foreclosure Pressure 
U.S. State Foreclosure Pressure Index (100) Rank
California 97 1
Florida 95 2
Nevada 91 3
New York 90 4
New Jersey 89 5
Hawaii 88.6 6
Connecticut 87.01 7
Massachusetts 86.98 8
Texas 86 9
Colorado 85 10

California ranks first with a Foreclosure Pressure Index of 97/100 (Foreclosure Rate Score: 37/40 | Housing Cost Burden Score: 60/60). In the Golden State, 1 in every 3,407 housing units faces foreclosure, while the housing cost burdens 41.10% of homeowners. 

Looking at the study, a spokesperson from Kind House Buyers commented,

“California remains the nation’s most pressured housing market,” says a housing analyst. “Skyrocketing home prices, high property taxes, and widespread cost burdens mean many residents are just one financial setback away from foreclosure. Homeowners here must prioritize early intervention and financial planning to mitigate risk.”

Why Does This Matter for Homeowners?

  • The Foreclosure Pressure Index identifies markets where early intervention, counseling, and financial guidance could make the biggest impact.
  • Homeowners in states with high risks should plan their money to help prevent foreclosure.
  • Awareness of loan modification options can provide critical relief before default occurs.
  • Exploring alternative selling options may help homeowners avoid foreclosure altogether.

Methodology

The study was conducted by Kind House Buyers, a Tacoma-based home-buying company that helps homeowners sell quickly and with ease. While they specialize in fast, cash purchases, they also offer alternative solutions when a cash offer isn’t the right fit.

This analysis evaluated foreclosure risk across all 50 U.S. states using two core metrics:

  • Metric 1 – Foreclosure Rate (40%)

State-level foreclosure rates were measured as the number of housing units per foreclosure filing, sourced from ATTOM Data’s October 2025 foreclosure report.

  • Metric 2 – Housing Cost Burden (60%)

Housing cost burden represents the percentage of homeowners spending over 30% of their household income on housing costs, sourced from America’s Health Rankings.

Each state received a normalized score for both metrics, combined into a Foreclosure Pressure Index (0–100) to identify where homeowners face the greatest combined risk from affordability strain and foreclosure activity.

Data Sources