A recent analysis by ATTOM of housing risk shows that 16 of the 50 highest-risk markets are in California, followed by nine in New Jersey, four in Florida, and three each in Arizona and Texas.
The report, Q3 2025 U.S. Housing Risk Report, highlights county-level housing markets that were more or less vulnerable to declines in Q3 2025, based on home affordability, equity levels, and other key indicators, including the share of seriously underwater mortgages, foreclosure activity, and county unemployment rates.
According to the report, California leads the list of highest-risk counties.
Butte County, California; Humboldt County, California; Charlotte County, Florida; Shasta County, California; and El Dorado County, California were identified as having the highest housing market risk, ATTOM said. Each of those counties posted unemployment rates of 5.1% or higher and recorded at least one foreclosure for every 806 homes, the analysis said.
Least At-Risk Counties Identified
ATTOM’s report said 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, West Virginia; Chittenden County, Vermont; Erie County, New York; Olmsted County, Minnesota; and Albany County, New York. Each reported unemployment rates at or below 4 percent and foreclosure levels no higher than one in every 2,624 properties, ATTOM said.
ATTOM said it dug into the data behind the ATTOM Q3 2025 Housing Risk Report to reveal the top 10 highest risk U.S. housing markets. Those include:
No. 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
No. 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
No. 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
No.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
No. 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
No. 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
No. 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
No. 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
No. 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
No. 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
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