ATTOM’s newly released Q3 2025 U.S. Housing Risk Report highlights county-level housing markets that are more or less vulnerable to declines in Q3 2025, based on home affordability, equity levels, and other key indicators.
WATCH: ATTOM Figures Friday: Top 10 Highest Risk U.S. Housing Markets in Q3 2025
The analysis noted that 16 of the 50 highest-risk markets were located in California, followed by nine in New Jersey, four in Florida, and three each in Arizona and Texas. Risk levels were assessed using factors such as affordability, the share of seriously underwater mortgages, foreclosure activity, and county unemployment rates.
Also, according to the report, California leads the list of highest-risk counties. Butte County, CA; Humboldt County, CA; Charlotte County, FL; Shasta County, CA; and El Dorado County, CA were identified as having the highest housing market risk. Each of these counties posted unemployment rates of 5.1% or higher and recorded at least one foreclosure for every 806 homes.
ATTOM’s Q3 2025 housing impact report mentioned that of the 50 least risky counties identified in the analysis, seven were located in Wisconsin, five in Tennessee, and four each in Montana, New Hampshire, and Virginia.
ATTOM’s latest analysis stated that the least risky counties included Berkeley County, WV; Chittenden County, VT; Erie County, NY; Olmsted County, MN; and Albany County, NY. Each reported unemployment rates at or below 4 percent and foreclosure levels no higher than one in every 2,624 properties.
In this post, we dig into the data behind the ATTOM Q3 2025 Housing Risk Report to reveal the top 10 highest risk U.S. housing markets. Those include:
#1 – Butte County, California
- 48.6% of income needed to buy
- 4% of properties underwater
- 1 in every 735 properties with foreclosure filings
- 6.8% July 2025 unemployment rate
#2 – Humboldt County, California
- 50.2% of income needed to buy
- 3.1% of properties underwater
- 1 in every 803 properties with foreclosure filings
- 6.1% July 2025 unemployment rate
#3 – Charlotte County, Florida
- 39.1% of income needed to buy
- 7% of properties underwater
- 1 in every 499 properties with foreclosure filings
- 5.1% July 2025 unemployment rate
#4 – Shasta County, California
- 39.4% of income needed to buy
- 3.6% of properties underwater
- 1 in every 532 properties with foreclosure filings
- 6% July 2025 unemployment rate
#5 – El Dorado County, California
- 65.8% of income needed to buy
- 2.6% of properties underwater
- 1 in every 806 properties with foreclosure filings
- 5.4% July 2025 unemployment rate
#6 – Atlantic County, New Jersey
- 45.6% of income needed to buy
- 2.6% of properties underwater
- 1 in every 710 properties with foreclosure filings
- 6.4% July 2025 unemployment rate
#7 – Cumberland County, New Jersey
- 31.7% of income needed to buy
- 4% of properties underwater
- 1 in every 477 properties with foreclosure filings
- 8.6% July 2025 unemployment rate
#8 – Solano County, California
- 52.7% of income needed to buy
- 2.2% of properties underwater
- 1 in every 720 properties with foreclosure filings
- 5.9% July 2025 unemployment rate
#9 – Madera County, California
- 49.8% of income needed to buy
- 2.1% of properties underwater
- 1 in every 720 properties with foreclosure filings
- 8.33% July 2025 unemployment rate
#10 – Tangipahoa Parish, Louisiana
- 30.1% of income needed to buy
- 13.1% of properties underwater
- 1 in every 752 properties with foreclosure filings
- 5.5% July 2025 unemployment rate
Q3 2025 Top Ten Riskiest Housing Markets Conclusion
The ATTOM Q3 2025 Housing Risk Report identifies where housing risk was highest and lowest across U.S. counties, based on affordability, underwater mortgages, foreclosure activity, and county unemployment rates. Several California markets lead the highest-risk list and counties in states like Wisconsin and Tennessee ranked among the least at risk.
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