In a recent report released by real estate analytics firm ATTOM, it was highlighted that homeowners in certain counties in Florida and California are facing the risk of declining property values due to high unemployment rates and foreclosure rates higher than the national average.
According to the report published on June 4th by ATTOM, the analysis covered foreclosure rates, housing affordability, and the number of homes with mortgage balances exceeding their current market value in 580 counties across the United States.
Florida ranked at the top for the risk of property value decline, with 12 out of 67 counties considered vulnerable to such risks. California followed closely with 9 counties, while New Jersey and Illinois each had 5 counties listed.
The report also took into consideration factors such as unemployment rates in different regions and the average salary needed to sustain homeownership as part of the risk assessment.
While housing prices have seen a slight decline from last summer’s peak, housing affordability remains a challenge in many parts of the United States. Rob Barber, CEO of ATTOM, stated that the greatest risks are still concentrated in counties with unemployment rates exceeding 5% and high foreclosure rates.
Research highlighted Charlotte County in Florida as the market with the highest risk of property value decline in the nation. With an unemployment rate of 5.7% in April 2026, significantly higher than the national rate of 4.3%, the county in southwest Florida is facing economic challenges due to a large retiree population and a majority of the labor force working outside the county.
In California, Butte County and Shasta County in the northern part of the state were identified as high-risk areas for property value decline. Data from the California Employment Development Department showed unemployment rates of 5.6% and 5% in these counties in April 2026.
The high housing prices in many California counties could potentially increase financial pressure on homeowners, leading to a higher risk of financial distress in the future. The National Association of Realtors reported that the median price for single-family homes in the United States in the first quarter of this year was $404,300, significantly lower than the median prices in most areas of California.
According to a report from the California Association of Realtors, despite a 3% decrease in median home prices compared to the same period last year, the first-quarter median price for homes in California still stood at $843,400, more than double the national average.
ATTOM identified Santa Cruz, Marin, San Luis Obispo, and Orange County in California as among the least affordable areas for housing in the United States. Only Kings County in New York had worse housing affordability than these regions nationally.
On the other hand, counties in Tennessee, Virginia, and Wisconsin were found to have the lowest risk of property value decline.
ATTOM’s report highlighted Chittenden County in Virginia, Rutherford County in Tennessee, and Arlington County in Virginia as areas with the lowest risk of property value decline nationally due to strong job markets, low foreclosure rates, and a smaller proportion of homes with mortgage balances exceeding their current market value.
Approximately 3.2% of homes in the United States were classified as seriously underwater properties, meaning the outstanding mortgage balance exceeded the home’s current market value by more than 25%.
The top 5 areas with the most seriously underwater properties in the United States were all located in Louisiana, including Ouachita Parish, Calcasieu Parish, Tangipahoa Parish, Ascension Parish, and Rapides Parish.
ATTOM researchers also found that Liberty County in Texas, Baltimore City in Maryland, and Dorchester County in South Carolina had the highest foreclosure rates.