Tucson sees uptick in home foreclosures

Rising costs for utilities, groceries and gasoline, combined with workplace reductions becoming more common in Arizona, are fueling the rise in foreclosures, analysts say.

In April, there were 62 homes foreclosed in the Tucson market, compared to 39 in April of 2025, data from the Pima County Recorder’s Office shows.

The region’s lowest record of nine monthly foreclosures was in April of 2020, when many mortgage companies offered homeowners forbearance during the pandemic.

The highest record of monthly foreclosures in the Tucson market was in March of 2011, when 791 homes were foreclosed.

Compared to that, the numbers so far in 2026 aren’t considered alarming, but high-rate purchases between 2022 and 2024 mean some homeowners are now facing affordability issues, if their income hasn't kept pace with rising expenses, analysts say.

“More homeowners are falling behind on payments, and more properties are entering the foreclosure process,” according to KeyCrew, an analysis group of the real estate market. “While the situation is not yet a crisis, the trend marks a shift in the Arizona housing market that both buyers and sellers should take note of.”

The lowest number of annual foreclosures in Tucson in over 20 years was in 2022, when 265 homes were lost to foreclosure. That number rose each year to 425 in 2025. For the first four months of this year, there were 180 foreclosures in the Tucson area.

“Foreclosure activity continued its gradual trend higher in April, with both foreclosure starts and completed foreclosures posting annual gains,” said Rob Barber, CEO at ATTOM, which aggregates real estate data. “The year-over-year increases suggest lenders may be working through distressed inventory as higher borrowing costs and affordability challenges impact some homeowners.”

The trend is being seen across the country.

ATTOM data shows there were 42,403 foreclosure filings for homes in the U.S., an increase of 18 percent from last year.

“Arizona’s foreclosure numbers are still relatively contained, but the direction matters more than the level,” KeyCrew says. “If living costs continue to climb or employment softens further, foreclosure activity could edge higher — especially in price tiers where buyers are already stretched.”

The good news is that lenders are more flexible, and many homeowners have some equity in their homes that gives them a cushion.

“This is not a market unraveling overnight,” KeyCrew says. “The next year will likely be defined less by dramatic headlines and more by quiet adjustments — realistic pricing, earlier intervention from borrowers and more selective buyers evaluating risk carefully.”