Americans living in tourist hotspots are increasingly losing their homes after failing to keep up with mortgage payments.
Foreclosure filings across the US rose 13 percent in July compared to the same time last year, affecting 36,130 families.
Those notices — which include default notices, scheduled auctions, and bank repossessions — were most heavily concentrated in Florida and Nevada.
Nevada led the nation with the most foreclosures last month, seeing one in every 2,326 residential properties face a default.
The Sunshine State is experiencing a significant foreclosure rate, with one in every 2,420 homes receiving a foreclosure notice, as reported by data analytics firm ATTOM.
Both Nevada and Florida are hotspots for tourism, an industry that has been hard hit as uncertain consumers look to reign in their budgets.
Targeted boycott campaigns from Canada as a result of President Trump’s tariff policies have also hurt local economies across the US.
‘Florida and Nevada both have local economies that are heavily reliant on the tourism industry,’ Realtor.com senior economist Joel Berner explained.
The housing market in Las Vegas is suffering with prices dropping and a surge in inventory
‘Tourism tends to be volatile, and when economic growth slows as it has this year, that industry is often the first and most painfully impacted.
‘Some homeowners in these states may be losing their jobs and becoming unable to make their mortgage payments.’
Tourism in Las Vegas is particularly tied to the gambling industry which has seen a tumble in visitors in recent months.
The housing market in Nevada’s city is witnessing an influx of single-family homes being listed, as new constructions hit the market daily, leading to a supply that far exceeds demand.
According to the June Monthly Housing Report from Realtor.com, new listings across the US rose 6.2 percent compared to the same month last year.
However, the most pronounced changes are occurring in Sin City, where the housing inventory has surged by an astounding 77.6% over the past year, marking the highest increase in the country.
Berner noted that as inventory rises without matching demand, home prices decline, resulting in homeowners’ mortgages being “underwater,” which means they owe more than the current value of their homes.
These homeowners often face financial difficulties in making mortgage payments, and since selling the home no longer solves their financial strain, many eventually default on their loans.
Realtor.com economist Joel Berner said the uptick in foreclosures can be linked to tourism
Foreclosure filings across the US rose 13 percent in July compared to the same time last year
One in every 2,420 homes in Florida was subject to a foreclosure notice last month, according to ATTOM
Florida has suffered significantly from the decline in Canadian tourists, as many “snowbirds” traditionally sought refuge in the state to escape the severe winters of Canada.
However, disillusionment with their southern neighbors has even led some Canadians to sell their dream US vacation homes.
Home prices are falling across Florida as condo owners look to offload their properties as HOA and insurance costs skyrocket.
The average condo sale price in the US fell 2.2 percent year over year to $354,100 in May, according to data from Redfin — the second largest drop in records dating back to 2012.
It comes as one of New York City’s ritziest neighborhoods has also been hit by a shock surge in foreclosures in recent months.
A slew of wealthy residents along Manhattan’s historic Park Avenue had their apartments foreclosed on earlier this year. Foreclosure rates are also soaring across New York City overall.
Figures last month revealed a double-digit spike in mortgage defaults across the city in spring.
The swanky stretch of Park Avenue, that is lined with manicured gardens, logged a cluster of foreclosures, despite the sky-high property prices.
‘Interest rates are rising, there is high economic distress, many times generational wealth does not mean someone is liquid,’ luxury Serhant realtor Peter Zaitzeff told the Daily Mail.
‘Pandemic-era protections against foreclosure are also gone, so that is also a factor.’
