M
anhattan's posh neighborhoods are experiencing a surge in foreclosures, despite their reputation for luxury and wealth. According to recent data from PropertyShark, new foreclosure filings jumped 11% citywide between April and June compared to the same period last year.

    In Manhattan, mortgage defaults rose by 15%, with some surprising cases emerging in historically affluent areas. One such area is a ZIP code around Park Avenue, known for its exclusive buildings and high-end prices. In fact, out of 46 new foreclosure filings in Manhattan, eight were concentrated in this particular neighborhood.

    The affected area, 10022, spans from 49th to 60th streets between Fifth Avenue and the East River, and is home to iconic landmarks like the Waldorf Astoria New York and Bloomingdale's. Despite its reputation for luxury shopping and high-end living, the median listing price in this ZIP code was a staggering $1.3 million in June.

    Experts point to rising interest rates and economic distress as contributing factors to the surge in foreclosures, even among well-heeled residents. "Interest rates are rising, there is high economic distress, many times generational wealth does not mean someone is liquid," said Peter Zaitzeff, a luxury realtor at Serhant.

    Other boroughs also saw significant increases in foreclosure filings, with Brooklyn leading the city with 129 new cases, a 36% spike compared to last year. The Bronx surpassed its five-year foreclosure peak with 57 filings last quarter, while Staten Island foreclosures increased by 25%. Queens, on the other hand, experienced a welcome slowdown in fillings, down 20% from last year.