Tampa has now become the #1 metro city in the U.S. for foreclosures, as the Sunshine State leads for the nation. The foreclosure rate has been significantly increasing across the country, but Florida is being the hardest hit state. The alarming number in Tampa shows distress for the local housing market.
Foreclosure Spike
In Tampa one in every 1373 housing units are facing foreclosure. While overall in Florida, the rate is one in every 1829 houses. The ATTOM data shows the rapid increase, with. a 19% rise in the foreclosure rate since last year and 3% since September.
What’s Driving the Spike
- Increasing insurance premiums
A 2025 realtor.com Climate Risk Report showed that Florida was on the top of the list in climate related insurance pressure, especially the metro areas like Tampa, Orlando, Jacksonville because of high risks of flooding and hurricanes. The value of flood risks Tampa faces is $117.7 billion, and the data also highlights that Florida homeowners pay the highest insurance premiums in the nation.
The data from American Community Survey and U.S. Census Bureau estimates that Florida homeowners annually spent $2,000 to $2,400 on homeowners’ insurance in the year 2024. Where most insured homeowners in nearby states pay between $1,000 to $1,499.
- Declining home values
Data from Zillow shows that most of the homes listed in the market have lost their prices. 53% of all have experienced declining value since last year. This sums up to the highest level of loss since the year 2012. Another data report from Zillow outlines that in Tampa, there was an average 12% decline in the rates of houses, and 85.2% of homes are facing declining rates from their highest values since last year.
There was an exclusive market of housing in Tampa Bay during 2020 to 2023. The market exploded and families who bought homes during this period are now realizing that selling is not as easy as it looks in this market.
- Rising daily expenses
According to wages.com the minimum wage rate in Florida is $14 for non-tipped employees. An AARP report shows that Florida ranks on #9 in the nation for most expensive utilities. Medicare Information Project notes that Floridians pay approximately $393 a month on average and if the individual is older than 65, they pay around $700 per month. With that, Fox 13 reported that Tampa Bay’s inflation rate after the pandemic was even higher than New York and San Francisco. Those who are not able to cope with the expenses are moving to Carolinas. Even though there is no state income tax, individuals are still required to pay the Federal taxes, social security and Medicare taxes.
- Other factors
A report by construction coverage highlighted cities with the oldest home buyers. Tampa Bay, listed in the top 5, was at 26.8%. Backlogs, older home buyers’ budget. Their most common source of income is Social Security. However, the 401k and IRA can also be considered. With the rise in inflation and higher costs, their income does not rise and remains the same. Difficulty in covering the expenses makes it harder to live comfortably.
Analysts caution that part of the surge in filings is due not only to new distress but to a backlog of previously delayed filings being entered into the system. Still, the effect is real, and it puts additional pressure on local markets. The HOA and mortgage rates also add up to this.
Word from a local realtor
“They would have to sell at essentially the same price they bought for because there has been a declining market, adding that many would need to bring roughly $10,000 to the closing table in order to avoid a short sale,” said Mia Annibale, St. Petersburg realtor of Smith and Associates. “By the time we get that net sheet, they’re negative. They can’t sell; they can’t afford the property.”
She concluded that calculating numbers brings clarity and after this situation comes a time when families are at risk of foreclosure.
What to expect
This elongated period of foreclosures, rising inflation is not a bad sign but it showcases that after a period of economic disputes things may come back to normal again. As ATTOM CEO Rob Barber noted, this appears to be a period of market adjustment rather than sudden collapse.
For brokers, lenders and sellers, the key area they need to consider is Florida’s dual nature in the real estate market — on one side the global investors and high net worth buyers are expanding the luxury market by record high sales, whereas the average homeowner is struggling to pay the regular mortgages, insurance premiums and other expenses.
