The U.S. housing market is entering the second quarter with mounting signs of fatigue, as affordability pressures intensify and sellers begin to lose leverage.
Foreclosure activity across the U.S. housing market accelerated at the start of 2026, signaling mounting financial strain for a subset of homeowners even as overall volumes remain below pre-pandemic norms.
A slight cooling in U.S. home prices did little to relieve pressure on homeowners in 2025, as property taxes climbed to nearly $400 billion and effective tax rates reached their highest level in five years, underscoring the growing disconnect between market values and local tax burdens.
The U.S. housing market entered 2026 on a subdued footing, with home-price gains cooling sharply and activity constrained by a persistent affordability crunch, according to the S&P Cotality Case-Shiller Home Price Index.