Foreclosures increase in first half, with Los Angeles leading the way
Some homeowners in California – and nationwide – are financially strapped and struggling, with more missing mortgage payments during the first half of the year.
More than 21,540 homeowners in California faced foreclosure during the first six months of the year, an almost 13% increase compared to the same period in 2025, according to ATTOM Data.
Los Angeles and Bakersfield had the largest annual increase in homeowners struggling with their mortgage payments, up 31% and 21%, respectively. Six of the eight regions reported a boost in foreclosure notices from a year ago.
Foreclosures in Fresno and San Jose were down.
Not even close to foreclosures during the Great Recession
Quarterly and six-month foreclosure figures are better comparisons than monthly reports, which can be greatly skewed.
Now, before folks become overly concerned or maybe see a buying opportunity with foreclosures flooding the market, the current level is an increase but nowhere close to the foreclosure activity during the Great Recession.
Foreclosures often topped 60,000 every quarter between 2008 and 2011 in California, one of the hardest-hit markets during the housing collapse, according to Cotality.
And California is faring better than much of the nation.
‘Some homeowners may be facing greater financial strain’
About 227,550 properties had foreclosure filings – default notices, scheduled auctions or bank repossessions – in the first half of the year, a 21% jump from the same six-month period in 2025.
“Foreclosure activity continued to increase in the first half of 2026, but the broader picture remains one of a market that is gradually returning to more typical patterns,” said ATTOM CEO Rob Barber. “The combination of rising foreclosure starts, increased foreclosure completions, and shorter timelines points to a continued normalization of the foreclosure process, although the increases also suggest that some homeowners may be facing greater financial strain than they were a year ago.”
Idaho, Colorado and Georgia had the largest annual increases in foreclosure filings, up 50% compared to a year ago. Florida, South Carolina and Indiana had the highest percentage of homes entering foreclosure proceedings during the first six months of the year.
Foreclosure filings for first half of 2026
| City | Foreclosure filings | % compared to a year ago |
|---|---|---|
| Bakersfield | 890 | +21.4% |
| Fresno | 612 | -4.1% |
| Los Angeles | 5,193 | +31.4% |
| Riverside | 4,024 | +6.7% |
| Sacramento | 1,603 | +10.9% |
| San Diego | 1,210 | +2.8% |
| San Francisco | 2,044 | +7.6% |
| San Jose | 370 | -2.4% |
| California | 21,543 | +12.8% |
Source: ATTOM Data
Coronado’s failure to file a housing plan has attracted the attention of state officials and prompted a lawsuit. ADOBE STOCK
‘Dare us to do something about it’: California sues five cities over housing plans
Housing has become a front-and-center issue for the past several years, as fewer Californians can afford to buy a home – and more than half of renters are considered cost-burdened.
An aggressive effort by state officials to demand cities and counties to detail far-reaching plans to build more housing, including much-needed affordable housing.
Most cities and counties have adopted and submitted their housing elements and met the requirements under state. But five cities – Calexico, Costa Mesa, Half Moon Bay, Ridgecrest and Turlock – missing the deadline for the past two and a half years, according to state officials.
City could lose the ability to approve – or deny – some housing projects
California has filed lawsuits against the five cities, demanding they comply or face hefty fines – as much as $50,000 per month – and lose the ability to oversee qualifying low- and moderate-income housing projects on zoning grounds. An out-of-compliance city could face the “Builder’s Remedy,” giving developers the upper hand and eliminating the decision-making at the local level.
“California can’t solve the housing crisis while some cities sit on their hands and dare us to do something about it,” said Governor Gavin Newsom, who has made housing his top priority since being elected. “These five jurisdictions had every chance to follow the law and plan for their fair share of housing. They chose not to, so now they’ll answer for it in court. Housing law applies statewide, and no city gets a pass.”
Some cities have balked at the state mandate, requiring some negotiations and tough love from the state. Artesia, Coronado, Fullerton, Hollister, La Habra Heights, Mailbu and San Bernardino have settled cases with the state and bringing their housing plans into compliance.
“California’s housing crisis demands action, not excuses,” said Attorney General Rob Bonta. “Jurisdictions that remain out of compliance with our Housing Element Law are standing in the way of the homes Californians need. We are well past the halfway point of the current housing planning cycle, and timely compliance is not optional. As I’ve said many times, no local government has to solve this challenge alone, but every local government has to do its fair share.”
Turlock could submit housing plan by end of August
Four of the five cities have not publicly commented on the lawsuit. But the City of Turlock, an affordable community in the Central Valley, says it has been working on its housing element, with final consideration on Aug. 25.
“The City has made significant progress toward housing element compliance, and we have a clear path forward,” said Turlock city manager John Murphy. “This process has involved a substantial amount of planning and technical work, and city staff have worked diligently to bring us to this point. Our focus now is on completing the remaining public process, achieving housing element compliance, and continuing to plan responsibly for Turlock’s long-term future.”
California needs at least 2 million – and some folks say as many as 3 million – more homes, from affordable apartment communities to single-family homes. The Housing Accountability Unit, basically the law that requires cities submit and follow housing plans, has supported the development of 13,40 homes, with about 25% being affordable units.
“The vast majority of California’s cities and counties have stepped up to achieve housing element compliance,” said Housing and Community Development Director Gustavo Velasquez. “For the small number that are still falling short, the actions we are taking today should send a clear message: no community is exempt from doing its part to solve our housing crisis.”
Almost 60 years to save for a home in San Francisco. ADOBE STOCK
Buying a home can be a decades-long effort in California, but only a few cities are good places for first-time buyers
Two reports, one result – first-time buyers have it tough in California.
Affordability is a Mount Whitney-size mountain. Fewer than one of every four households can afford to buy a home and many of those who can need to earn at least $200,000 per year and often more, according to the California Association of Realtors.
But for a huge majority of wanna-be buyers, saving enough money for the down payment is the first – and often impossible – mountain to overcome.
For the average buyer who earns the median income and puts aside 5% for a down payment, buying a home can take almost 60 years in San Francisco and more than 40 years in Los Angeles, the second- and third-most in the nation, according to Rocket Mortgage. New York City buyers need to save for at least 65 years (see table below).
The down payment mountain is more manageable in Riverside and Sacramento, where buying is possible in a decade or less.
Big cities, larger down payments – and more patience
Of course, the figure is based on the median home price and the median income for the region. Buyers could purchase more affordable homes or save more than 5% per year.
Plus, Rocket Mortgage based the number of years needed to save for a home for the average down payment the region. In Los Angeles, San Diego, San Francisco and San Jose, the average down payment is more than 20%.
Many lenders, especially those connected to government home-buying programs, accept much-smaller down payments for qualified borrowers.
In comparison, buyers in Riverside and Sacramento 10% down payments are the norm.
The best cities for first-time buyers are midsize communities
But here is the catch, none of those cities are the best places for first-time buyers, according to a recent WalletHub report. Only five cities in California were considered good places for first-time homebuyers, based on affordability and quality of life.
Two of the five cities – Roseville and Elk Grove – are in the Sacramento region, where homes are more affordable than those in the Bay Area and Southern California.
Clovis and Visalia, both located in the more affordable Central Valley, and Lancaster in the high desert of Los Angeles County also made the top 100. California’s other cities are just too expensive.
Palm Bay, Florida and the Arizona cities of Surprise and Gilbert are the best cities for first-time homebuyers in the nation.
| City | Years needed to buy | Down payment | % of purchase price |
|---|---|---|---|
| Anaheim | 33.6 | $170,000 | 20% |
| Los Angeles | 41.5 | $170,500 | 20% |
| Oakland | 25.4 | $130,000 | 20% |
| Riverside | 8.1 | $36,600 | 5.4% |
| Sacramento | 9.9 | $45,407 | 10% |
| San Diego | 25.8 | $143,500 | 20% |
| San Francisco | 57.2 | $400,000 | 26% |
| San Jose | 33.6 | $249,000 | 22% |
Important note: Years needed to buy is based on saving 5% of annual income to meet the average down payment per city.
Source: Rocket Mortgage
