NYC Foreclosures Are Rising

After years of unusually low foreclosure activity, New York City is seeing a noticeable uptick in 2025. The city recorded about 1,588 first-time foreclosure filings, roughly 8% higher than last year, showing a modest but clear increase in distressed properties.

Here’s how the boroughs are shaping up:

• Queens leads the city with 587 filings, making up more than a third of NYC’s total.
• Brooklyn had 460 filings, a small increase from 2024.
• The Bronx saw filings jump about 35%, highlighting growing financial pressure in some neighborhoods.
• Manhattan ended the year with 208 filings, the highest in at least 15 years.
• Staten Island remains the quietest borough, though filings ticked up slightly.

Even with these increases, the numbers are still far below historic levels seen during the 2008 crisis. It’s more about a return to normal after pandemic-related protections expired.

‍

Why Foreclosures Are Going Up in NYC

There are a few main reasons:

1. End of pandemic protections – Foreclosure moratoriums and forbearance programs have expired, exposing homeowners and small landlords who were relying on them.
2. Higher costs – Property taxes, insurance, and maintenance are squeezing budgets, especially for small multifamily owners.
3. Neighborhood vulnerabilities – Parts of Southeast Queens and Brooklyn, which were hit hard in 2008, are seeing more distressed properties again.
4. High mortgage rates – Many owners are struggling with refinancing or higher monthly payments, which can lead to missed payments.

‍

What This Means for Homeowners and Investors

For Homeowners: Take a deep breath. Foreclosures are rising, but the city’s housing market isn’t falling apart. If you’re feeling the squeeze, it’s smart to explore your options early. Selling before things get tight or talking to your lender about a plan can help you protect your credit and your investment.

For Investors: Rising foreclosures can create new opportunities, especially for two-family homes or small multifamily buildings. Just remember, NYC is still a competitive market. Do your homework on neighborhoods, check the numbers carefully, and be ready to move quickly if a good deal comes along.

‍

NYC’s foreclosure numbers in 2025 show a slow return to normal rather than a crisis. Manhattan’s record filings, rising activity in the Bronx, and continued pressure in Queens highlight areas to watch. For both homeowners and investors, staying informed and proactive is key.

‍

Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.