Nassau County Posts 173 First-Time Foreclosure Filings in Q2 – 31% Spike Makes It the Busiest Metro Area Market
LONG ISLAND, NY – Nassau County has emerged as the region’s foreclosure leader in the second quarter of 2025, according to newly released data from PropertyShark, highlighting a troubling uptick in homeowner distress on Long Island. With 173 first-time foreclosure filings recorded from April through June, Nassau posted a 31 percent increase compared to the same period last year – surpassing every other county in the greater New York City metro area, including historically higher-volume boroughs like Brooklyn and the Bronx.
The report, released last week, reflects the number of new cases initiated during the quarter and serves as an early indicator of potential financial instability among homeowners. These figures are particularly concerning for Nassau, a county that traditionally sees less volatility in housing distress compared to its urban neighbors. Analysts suggest the increase may be driven by a combination of factors, including higher property taxes, inflation-related financial strain, and the expiration of temporary relief measures that were introduced during the pandemic.
In contrast, Suffolk County – the eastern half of Long Island – reported 96 new foreclosure filings during the quarter, a modest 4 percent decline year-over-year. While not a significant drop, it shows a level of relative stability not seen in Nassau. The disparity between the two counties may point to localized economic pressures or demographic shifts that are affecting homeowners differently across Long Island.
Elsewhere in the region, the data shows a mixed foreclosure picture. Brooklyn saw a 23 percent increase, while the Bronx jumped by 48 percent. Staten Island also saw a sharp rise of 28 percent. Meanwhile, Manhattan and Queens reported more muted increases, and Westchester County stood out with a 49 percent decrease in filings.
Nassau’s climb stands in stark contrast to the broader trend. As parts of the city and surrounding counties show signs of foreclosure stabilization or improvement, Nassau’s rise suggests that Long Island’s western communities could be facing mounting challenges. With housing affordability already strained, and property values still elevated from the pandemic-era real estate surge, many homeowners may now find themselves underwater or at risk of default.
If current trends continue, Nassau County officials and housing assistance organizations may need to ramp up efforts to provide support and foreclosure prevention resources. The data also raises concerns for the local real estate market, as increased foreclosure activity can affect neighborhood stability, property values, and the broader economic outlook.
For homeowners in the area, the message is clear: stay vigilant, seek financial advice early, and be aware of the signs of distress before the situation worsens. While Suffolk appears to be holding steady, Nassau’s surge serves as a reminder that the economic ripple effects of the past few years are far from over.
Top Questions on Nassau County’s Q2 2025 Foreclosure Surge & Local Real Estate Trends
1. Why did Nassau County lead the NYC metro area in foreclosures in Q2 2025?
Nassau recorded 173 first-time foreclosure filings in Q2, a 31% increase over the previous year. Factors may include rising property taxes, inflation-driven budget stress, and the expiration of pandemic-era mortgage relief programs.
2. How did Suffolk County perform compared to Nassau in the same period?
Suffolk saw 96 new filings, representing a modest 4% year-over-year decline—indicating relative stability in contrast to Nassau’s sharp rise.
3. Is this part of a larger trend on Long Island?
The trend appears localized to Nassau County. Suffolk remains steady, suggesting specific economic pressures may be affecting Nassau homeowners more acutely.
4. How do Nassau’s foreclosure numbers compare to NYC boroughs?
Nassau’s 173 cases were higher than any single borough. For example, the Bronx had 168 filings, Brooklyn 153, and Queens 117. Nassau’s total was the highest among all counties in the NYC metro.
5. Are these filings final foreclosures or early-stage notices?
These are first-time foreclosure filings—legal notices that a lender has started the foreclosure process. Many do not end in a completed foreclosure if resolved early.
6. Could high property values be contributing to this problem?
Yes. Nassau’s high home prices mean higher mortgage balances, property taxes, and insurance premiums. As interest rates rise and incomes stagnate, this combination increases homeowner vulnerability.
7. What does this mean for the housing market on Long Island?
An increase in foreclosure activity could put downward pressure on property values, especially in neighborhoods with multiple distressed properties. It could also signal tightening access to credit or a slowing market.
8. How can at-risk homeowners in Nassau get help?
Homeowners can reach out to HUD-approved housing counselors, local nonprofit foreclosure prevention programs, or legal aid services. Acting early is key to avoiding escalation.
9. Is the rest of the NYC metro area seeing similar foreclosure spikes?
The picture is mixed. The Bronx, Brooklyn, and Staten Island saw increases, while Manhattan and Westchester experienced declines. Nassau’s spike is among the sharpest in the entire region.
10. Where can I find the full PropertyShark report?
You can view the full report with charts and county-by-county data at:
🔗 https://www.propertyshark.com/Real-Estate-Reports/2025/07/09/ny-metro-foreclosure-report
