Foreclosure activity in California has reached its highest level since the onset of the COVID-19 pandemic, according to data from June 2026. The state reported approximately 4,500 housing units entering foreclosure last month, translating to one foreclosed home for every 3,205 units statewide. This places California ninth among U.S. states with the highest foreclosure rates, trailing behind Florida, South Carolina, and Indiana, which occupied the top three positions.

Nationally, foreclosure filings in June occurred at a rate of one per 3,656 housing units, marking a slight improvement from May figures. However, these rates remain elevated compared to the same period last year. California’s foreclosure challenges are concentrated in several counties, with Lake, Shasta, Sutter, and Mendocino experiencing the most significant impacts.

Over the first half of 2026, the state saw 21,543 homes in various stages of foreclosure. This accounted for 9% of the total 227,548 homes nationwide in foreclosure, making California the state with the third-highest foreclosure count after Texas and Florida.

Despite the rise in foreclosures, some analysts suggest there may be a potential upside for prospective homebuyers. Foreclosed properties can provide opportunities to purchase homes at reduced prices, which is particularly relevant in California’s notably high-cost housing market.

Comparatively, California experienced the 12th-lowest increase in foreclosures over the past two years, indicating that while current levels are elevated, the rate of growth in foreclosures has been relatively moderate in the state.