August 18, 2025
If you’ve been following the New York City real estate market, you’ve probably noticed some shifting tides in 2025—especially when it comes to foreclosures. As a realtor working across the boroughs, I can tell you firsthand: these numbers are making waves, and it’s important for both buyers and sellers to understand what’s happening and what it could mean for your next move.
In the second quarter of 2025, New York City saw a major uptick in foreclosure filings, with noticeable increases across every borough—even in the luxury markets. While many thought Manhattan’s high-end market was immune, the data says otherwise.
Let’s break down the key trends:
Manhattan, typically the crown jewel of NYC real estate, recorded a 15% jump in foreclosure filings. Even the posh 10022 ZIP code wasn’t spared, with 8 defaults. In total, 46 new foreclosure cases hit the courts this spring. This is a clear reminder: economic shifts can touch every corner of the city, no matter how prestigious.
Brooklyn took the lead as the city’s foreclosure hotspot, pushing past Queens. The borough reported 129 first-time foreclosure filings—a 36% increase compared to last year. If you’re hunting for a deal in Brooklyn, keep an eye out, but also be prepared for competition as inventory shifts.
The Bronx saw the sharpest spike—a massive 73% increase—reaching a five-year high. There were 57 new filings in Q2, showing that affordability doesn’t necessarily shield homeowners from financial pressures.
Staten Island also wasn’t spared, posting a 25% rise in foreclosure activity, with 48 cases. This pushed Staten Island to become the fourth-busiest foreclosure market in the city this quarter.
Interestingly, two-family homes are leading this foreclosure wave. They made up about a third of the total 408 foreclosure cases filed from April through June 2025, increasing 25% over the previous year. This is especially important for anyone in the multi-family space—whether you’re a buyer looking for opportunity or a seller needing to strategize.
What This Means for the Market:
For buyers, especially investors, these rising foreclosure numbers could mean more opportunities to purchase distressed properties, potentially at a discount. But don’t expect a market collapse—NYC remains competitive, and good deals get snapped up fast.
For sellers, especially those with multi-family properties, it’s time to stay proactive. Pricing and property condition are more important than ever in a shifting market. Don’t let deferred maintenance or unrealistic pricing lead your property into foreclosure risk.
As always, if you’re considering making a move in this market—whether to buy a foreclosure or protect your property from becoming one—let’s talk. Knowledge and timing are everything in NYC real estate.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
