Rising Foreclosures Mark a Return to “Normal” in Louisiana’s Housing Market

Foreclosure activity is climbing across south Louisiana, signaling what experts describe as a long-expected correction rather than a looming crisis.

According to new data from Attom, a national firm that tracks property and foreclosure trends, 45 of Louisiana’s 64 parishes saw an increase in residential foreclosure filings during the first half of 2025 compared with the same period last year. While the uptick reflects national trends tied to higher interest rates and inflationary pressure, it also underscores the unique challenges facing Louisiana homeowners—from rising insurance costs to stagnant property values.

Orleans Parish recorded the most foreclosure filings in the first six months of the year, with 434 homes in default—a 36% increase from 2024. Jefferson Parish followed with 184 filings, up 50% year over year. In East Baton Rouge Parish, filings rose 24% to 233, while St. Tammany saw a 22% jump to 230. Lafayette and Livingston parishes reported smaller increases of 18% and 8.5%, respectively.

Statewide, Louisiana experienced a 24% increase in foreclosure filings through midyear, slightly above the national average. In September, one out of every 4,700 homes in the state was in foreclosure—placing Louisiana 21st in the nation, roughly in the middle of the pack.

Industry observers say the numbers reflect a modest but noticeable normalization of market conditions after several years of artificially low foreclosure activity.

“When there is a sharp escalation in insurance rates, the amount homeowners with mortgages have to put into escrow goes up, and that can price people out of what they can afford,” said David Favret, regional vice president for Louisiana and Mississippi with Compass. “So, we’re definitely seeing an increase, though it’s a small one.”

Favret and other brokers attribute much of the rise to the lingering effects of the pandemic-era buying boom, when many homeowners stretched financially to compete in an overheated market. Now, with higher premiums and tighter credit, those overextended households are beginning to feel the squeeze.

Still, economists say there is no reason for alarm. Gary Wagner, an economist at the University of Louisiana at Lafayette, noted that while foreclosures and other consumer defaults are ticking upward, they remain well below historic peaks.

“This is consistent with an economy that has been slowing for the past 18 months or two years,” Wagner said. “But I am not seeing a lot of other data that makes me concerned. Something to watch, yes. But not worried yet.”

At the height of the 2008 financial crisis, more than 900,000 homes nationwide were in foreclosure. As of this fall, that figure stands closer to 100,000—a tenfold difference. “In terms of the rate of increase, what you’re basically seeing is that we didn’t have any foreclosures for almost four years,” said Jeffrey Furniss, a Baton Rouge broker with Coldwell Banker One who specializes in foreclosure sales. “Now we’re kind of getting back to normal.”

Louisiana’s foreclosure rate may be average, but the timeline for resolving cases is anything but. On average, it takes about 3,600 days—nearly a decade—to complete a foreclosure in the state, the longest process in the nation. In neighboring Texas, by contrast, the average completion time is less than six months.

That lengthy timeline has long been a source of frustration for both lenders and investors, who say it complicates market recovery and ties up capital. At the same time, it provides struggling homeowners more time to work through insurance or income issues before losing their property—an important cushion in a state with volatile housing costs.

Nationally, Florida continues to lead in foreclosure activity, while South Dakota remains the lowest. Louisiana sits comfortably in the middle—experiencing a return to normal market churn rather than a new wave of distress.

“This isn’t unique to Louisiana,” Furniss said. “It’s happening everywhere. The difference here is that it just takes a lot longer to work through the system.”

As the state’s housing market continues to stabilize, analysts say the key indicators to watch will be insurance premiums and wage growth—two factors that could determine whether Louisiana’s current uptick remains a blip or becomes something more sustained. For now, the consensus among economists is that the market is rebalancing, not breaking.