ATTOM’s newly released Q2 2025 U.S. Housing Risk Report analyzes county-level housing markets across the U.S. to identify those most and least susceptible to downturns in Q2 2025. Based on factors like home affordability, equity levels, foreclosure activity, and unemployment rates, the report reveals that a significant number of both the highest-risk and safest markets are concentrated in the South.
WATCH: ATTOM Figures Friday: Top 10 Most Vulnerable U.S. Housing Markets in Q2 2025
The analysis also noted that among the 50 most vulnerable county housing markets in Q2 2025, California led the way with 14 entries, followed by Florida with seven, New Jersey with five, and Louisiana with four. Risk levels were assessed using a combination of key factors, including home affordability, foreclosure rates, the share of seriously underwater mortgages, and local unemployment figures.
ATTOM’s Q2 2025 housing impact report mentioned that financial pressures on homeowners intensified in many markets during the second quarter, as home prices climbed to new record highs. Meanwhile, as of June, mortgage rates, wages, and unemployment levels remained relatively unchanged.
Also, according to the report, in 111 of the 579 counties analyzed (19 percent), homeowners would need to allocate at least half of their annualized wages to afford the costs of buying and maintaining a home. In nearly 63 percent of the counties, housing expenses would consume at least one-third of annual income.
ATTOM’s latest analysis stated that the counties deemed most at risk in ATTOM’s analysis tended to share a mix of elevated foreclosure activity and higher-than-average unemployment. Many of these—including several California counties impacted by wildfires in recent years—will be familiar to long-time readers of the report.
In this post, we dig into the data behind the ATTOM Q2 2025 Housing Risk Report to reveal the top 10 most vulnerable U.S. housing markets. Those include:
#1 – Charlotte County, Florida
- 6% of income needed to buy
- 8% of properties underwater
- 1 in every 372 properties with foreclosure filings
- 9% June 2025 unemployment rate
#2 – Humboldt County, California
- 7% of income needed to buy
- 8% of properties underwater
- 1 in every 764 properties with foreclosure filings
- 6% June 2025 unemployment rate
#3 – Shasta County, California
- 1% of income needed to buy
- 9% of properties underwater
- 1 in every 586 properties with foreclosure filings
- 5% June 2025 unemployment rate
#4 – Butte County, California
- 8% of income needed to buy
- 9% of properties underwater
- 1 in every 766 properties with foreclosure filings
- 5% June 2025 unemployment rate
#5 – Cumberland County, New Jersey
- 3% of income needed to buy
- 0% of properties underwater
- 1 in every 578 properties with foreclosure filings
- 2% June 2025 unemployment rate
#6 – Tangipahoa Parish, Louisiana
- 5% of income needed to buy
- 1% of properties underwater
- 1 in every 698 properties with foreclosure filings
- 9% June 2025 unemployment rate
#7 – Madera County, California
- 0% of income needed to buy
- 1% of properties underwater
- 1 in every 787 properties with foreclosure filings
- 1% June 2025 unemployment rate
#8 – El Dorado County, California
- 9% of income needed to buy
- 1% of properties underwater
- 1 in every 849 properties with foreclosure filings
- 2% June 2025 unemployment rate
#9 – Riverside County, California
- 5% of income needed to buy
- 5% of properties underwater
- 1 in every 755 properties with foreclosure filings
- 0% June 2025 unemployment rate
#10 – Livingston Parish, Louisiana
- 0% of income needed to buy
- 0% of properties underwater
- 1 in every 614 properties with foreclosure filings
- 4% June 2025 unemployment rate
Want to learn more about the most and least vulnerable housing market in your area? Contact us to find out how!
