Florida Foreclosure Rates in 2025: Why Collier County Remains a Resilient Outlier
- Ed DiMarco
- Jul 15
- 6 min read
Updated: Aug 26
Florida has long been a focal point of national real estate trends, and as of mid-2025, foreclosure rates across the state are drawing renewed attention. While the Sunshine State experienced a housing boom during and after the pandemic, recent economic pressures, such as rising interest rates, property insurance hikes, and declining inward migration, are contributing to a shift in the housing landscape. Collier County, home to the upscale city of Naples, is particularly noteworthy as it mirrors both statewide trends and its own unique challenges.
Florida's Foreclosure Trends in 2025
Florida currently ranks 2nd in the nation for foreclosure activity. According to ATTOM Data Solutions, there is approximately one foreclosure filing per 2,536 housing units across the state. That’s a notable increase compared to 2024, when Florida held the 3rd position nationally.
Key Statewide Foreclosure Trends:
As of June 2025, Florida continues to experience a heightened level of foreclosure activity. Foreclosure starts have risen by 8% year-over-year, although there's been a 4% decline month-over-month, indicating some temporary stabilization. Meanwhile, bank repossessions (REOs) surged by 34% compared to last year, highlighting a growing pipeline of distressed properties entering the market. The average time to complete a foreclosure now stands at 671 days, which is 12% faster than in 2024, reflecting accelerated legal and processing timelines.
Counties most impacted by this surge include Charlotte, Citrus, Santa Rosa, Calhoun, and Bay, all of which reported notable increases in filings. For instance, Charlotte County saw an increase of over 400% in foreclosure filings since early 2024.
This growing trend is primarily fueled by multiple pressures: rising insurance premiums that are pushing monthly housing costs beyond affordability; elevated interest rates on adjustable-rate mortgages that are resetting at higher levels; and property tax increases, which are significantly affecting second-home owners and investors holding rental portfolios. These economic stressors are converging, resulting in an apparent uptick in distressed sales and default filings across much of the state.
Zooming in on Collier County, June 2025
Collier County, traditionally one of the wealthiest counties in Florida, is not immune to the broader trend. However, it shows greater stability than many other counties. In fact, the latest figures show a foreclosure filing rate of 1 in every 1,045 housing units, which marks a 12% increase from Q1 2024. Yet this remains well below the rates seen in more distressed areas.
Key Drivers in Collier County:
Several core factors continue to shield Collier County from the foreclosure surge impacting much of Florida as of June 2025:
High Cash Buyer Percentage: Over 57% of all home purchases in Collier County during Q2 2025 were made in cash, according to data from Florida Realtors. This dramatically reduces exposure to mortgage defaults, as buyers are not subject to rising interest rates or adjustable mortgage resets.
Wealthier Demographic: Collier’s homeowner base is primarily comprised of high-net-worth individuals, retirees, and second-home buyers, who tend to have diversified income sources and lower loan-to-value ratios. The median household income in Naples, for example, exceeds $118,000, well above the Florida state average of $67,000.
Lower Speculative Activity: Unlike other parts of the state, which have experienced volatile price swings due to speculative investors and flippers, Collier has seen a 9% investor purchase rate in 2025, significantly lower than the 22–30% rates in counties like Lee or Hillsborough. This reduces the chances of panic selling or leveraged defaults.
Stable Employment & Infrastructure: Collier County benefits from a robust economic base anchored in healthcare, tourism, and public services. Major employers such as NCH Healthcare System, Arthrex, and the expanding regional airport continue to support low unemployment rates (hovering around 2.8% in June 2025). Additionally, infrastructure investments—including roadway expansions and hurricane resiliency programs—have boosted long-term confidence in the area.
This combination of wealth stability, low leverage, and a strong economic foundation positions Collier County as one of Florida’s most resilient housing markets amid growing statewide foreclosure activity.
Current Market Data (June 2025)
Median Home Value: $574,210 (⬇️ ~7.3% YoY)
Median Sales Price: $612,800
Days on Market: ~76 days to pending (⬆️ slightly from May)
Price per Sq. Ft.: ~$406
Inventory Level: 2.3 months supply (⬆️ 15% YoY)
New Listings: Down 5.2% compared to June 2024
Comparing Collier to Other Florida Counties
When comparing Collier County to other prominent Florida counties, it becomes clear that while some areas are experiencing a more severe foreclosure crisis, Collier maintains a relatively moderate rate of foreclosure. As of June 2025, Miami-Dade County has a foreclosure rate of 1 in every 1,250 housing units, and Hillsborough County is close behind with 1 in every 1,300 units. In contrast, Collier County’s rate stands at 1 in every 1,045 units.
Although this figure marks a slight year-over-year increase for Collier, it is still lower in severity than those seen in many more densely populated or speculative markets. Notably, Collier also shows lower REO (Real Estate Owned) growth, with no significant spike in lender-owned property listings in June 2025, according to reports from the Florida Realtors Association.
This suggests that Collier County's market remains more resilient than high-volume urban counties. Much of this resilience can be attributed to the county’s high concentration of cash buyers, a stable local economy, and reduced exposure to subprime or adjustable-rate loans—all factors that limit the number of distressed properties entering foreclosure proceedings. As foreclosure risks heighten across the state, Collier continues to represent a stronghold of relative market stability.
Florida vs. Collier County Comparison
Metric | Florida (Statewide) | Collier County |
Foreclosure Filing Rate | 1 in 2,536 units | 1 in 1,045 units |
Year-over-Year REO Growth | +34% | Stable/Declining |
Top Risk Factors | Adjustable mortgages, insurance hikes | Minor impact |
Market Stability | Mixed across counties | High stability |
What This Means for Homeowners and Investors: Investment Forecast 2025
For Homeowners in Collier County: The continued low foreclosure rate is a strong indicator of market stability and homeowner equity preservation. Most residents are in good financial standing, thanks to high cash equity, low leverage, and substantial retirement-based or investment-backed incomes. This means homeowners can weather short-term market fluctuations better than those in more debt-heavy markets.
For Real Estate Investors: While the chances of finding foreclosure deals in Collier are slim due to low REO activity, investors can still benefit from stable rental demand and long-term appreciation potential. Collier’s median rent levels have remained steady, with average monthly rents for 3-bedroom homes hovering around $3,200 in June 2025, making it an appealing option for income-focused investment strategies.
For Vacation Rental Owners: Despite rising insurance costs, Collier remains a top tourist destination. Occupancy rates for short-term rentals in Naples averaged 71% in early summer 2025, supported by a substantial influx of seasonal visitors. As a result, owners can expect steady returns, especially during peak seasons.
For Prospective Buyers: Collier presents an opportunity to purchase in a stable market with minimal price volatility, driven by a low rate of foreclosures. While home prices have slightly declined YoY, the lack of panic selling and distressed inventory helps protect long-term value.
Future Outlook: Will Foreclosures Continue to Rise?
Most experts agree that, while foreclosure rates are rising, the situation in Florida and Collier County remains manageable compared to the 2008 crisis. However, continued economic uncertainty could exacerbate the problem, particularly if interest rates remain high or insurance costs continue to climb.
Efforts by local governments to provide foreclosure relief programs and homeowner counseling may help curb a more severe downturn.
Frequently Asked Questions (FAQs) About Collier County, Florida Foreclosures 2025
1. Why are foreclosure rates increasing in Florida in 2025?
Foreclosure rates are rising due to a combination of higher mortgage interest rates, increased property insurance premiums, and property tax hikes, mainly affecting second-home owners and investment properties.
2. Is Collier County at risk of a housing crash?
Not likely. Despite a slight uptick in foreclosure filings, Collier remains financially resilient due to a large percentage of cash buyers and a wealthy, less-leveraged homeowner base.
3. Are foreclosure homes available for sale in Collier County?
They are rare. Collier has low REO inventory compared to other counties, so finding deeply discounted foreclosure properties is uncommon in this market.
4. How does Collier’s real estate market compare to Miami or Tampa?
While Miami-Dade and Hillsborough Counties (Tampa) have a higher volume of foreclosures, Collier has fewer filings per capita and significantly more market stability, thanks to its economic structure and buyer demographics.
5. Should I buy property in Collier County now?
If you're looking for long-term value and market stability, Collier is still a strong buy in 2025. With modest price corrections and a low impact on foreclosures, it remains attractive for both homeowners and investors.
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Article by Ed DiMarco, MS, MA,
Ed DiMarco is a seasoned Naples-based real estate expert renowned for his innovative 1% commission model and deep regional insight. With dual master’s degrees and a track record spanning luxury, investment, and commercial real estate since 2004, Ed combines academic prowess with real-world results. Covering Collier through Pinellas County, he’s recognized statewide as a proactive advocate, championing clients in tax disputes, foreclosures, and high-stakes property deals.
