Texas Foreclosure Volume Drops Below $600M After October's Billion-Dollar Spike

Texas's distress pipeline cooled in November, with flagged loans dropping back below $600M after October's billion-dollar run.

November 09, 2026

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Good morning. Texas spent October watching its distressed-loan pile top $1B. November's auction list brought some relief, with flagged loans sliding back under $600M even as Houston carried the heaviest load.

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Texas Foreclosure Volume Drops Below 0M After October’s Billion-Dollar Spike

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Market Snapshot

Top Market

By Transaction Volume

Houston — $42.2M

Properties Sold

All Asset Types

Transaction Volume

Sales Activity

$124.3M

Top Office Submarket

Avg Starting Rent

Far Northwest (Austin)

$83.36 / SF

Texas Office Rent

Avg Effective

$36.36 / SF

Office Rent Growth

YoY Change

-17.1%

*Office metrics courtesy of CompStak; data from 7/1/26 – 9/30/26. Sales metrics courtesy of Actovia; Texas properties reported sold during the week of 10/10/26 – 10/16/26.

Auction Relief

Texas Foreclosure Volume Drops Below $600M After October's Billion-Dollar Spike

Offices at Pin Oak Park in Houston, TX | Photo: Transwestern

Texas's distressed-loan pipeline eased in November, with flagged balances falling back under $600M a month after topping $1B.

By the numbers: Flagged troubled loans fell below $600M for November auctions, down from more than $1B in October, according to Roddy's Foreclosure Listing Service. Thirty-three properties are posted, nine of them loans carried over from earlier months.

Houston carries the load: Harris County accounts for 13 of the 33 flagged properties, the most of any county. The single largest new name is a $56.7M Goldman Sachs loan on the Offices at Pin Oak Park, a Houston medical complex that alone makes up 10% of the month's total.

An aging anchor in trouble: New York-based Norvin Healthcare Properties faces foreclosure on Pin Oak Park, a five-building, 505,000 SF complex on West Loop South built in 1975. Its 2018 loan works out to about $112 per SF.

Not every listing sells: Some borrowers reach agreements with their lenders before the sale date, so the final tally often lands below the posted figure as workouts replace auctions.

➥ THE TAKEAWAY

Relief, not resolution: A sub-$600M month breaks October's streak, but Texas has now crossed the $1B line four times this year, and medical office has joined the mix. For lenders and distressed buyers, the monthly list is still the first place to spot discounted Houston product before it trades.

Around Texas

➥ Plano voters rejected the five-tax package meant to fund the city’s $700M Stars arena pledge, sending officials back to rework the financing.

➥ Franklin Street is marketing 700K SF of Plano and Addison office space at a discount to replacement, with those buildings just 41% to 65% leased.

➥ Dallas-Fort Worth office vacancy fell 360 bps YoY to 18.6%, one of the nation’s sharpest vacancy drops, as $3.7B in office sales ranked third nationally.

➥ Houston’s retail market held firm in Q3, with direct vacancy at 5.6% and asking NNN rents at a record $22.03 per SF, up 8.1% YoY.

➥ Texas elected Gina Hinojosa governor, its first Democratic statewide win in decades, and her data-center moratorium plan now shadows the nation’s biggest buildout.

➥ CoreWeave bonds sank to record lows as a looming Texas crackdown on data centers rattles lenders to the AI buildout’s largest market.

➥ Austin apartment development is set to pick up as the supply pipeline thins from its peak and rents turn positive for the first time since 2022.

➥ About 13 GW of announced Texas data-center capacity sits at immediate risk under the governor-elect’s moratorium, enough to power 10 million homes.

Follow the Money

INDUSTRIALHOUSTON Adkisson Group and PCCP bought the 64-building, 2.7M SF Northwoods park, the largest Houston industrial campus trade on record.

EQUITIESTEXAS Tesla and SpaceX shares slid early as the midterm blue wave, Texas flipping Democratic among it, unsettled Musk-linked bets.

OFFICEDALLAS Lincoln and a partner acquired a 1.1M SF North Tollway office campus, wagering a $100M makeover revives suburban Dallas space.

RESIDENTIALDALLAS Wall Street transplants are clustering in walkable pockets like Knox and Legacy West, reshaping demand along the Y’all Street corridor.

INDUSTRIALHOUSTON Adkisson closed the 230-acre Northwoods deal after nearly two years and a trial run proving it could operate the 98%-leased park.

MULTIFAMILYHOUSTON A downtown office-to-residential conversion secured a $136M loan, a sizable bet on adaptive reuse in a market where most deals lean on subsidies.

OFFICEAUSTIN Indeed put its entire Austin headquarters on the sublease market, adding one of downtown’s largest blocks as big tech keeps shedding space.