#United States #Irvine #ATTOM #U.S. Housing #Zombie Properties

U.S. Home Vacancy Rate Steady for 13th Consecutive Quarter

According to the latest report from ATTOM, the vacancy rate for residential properties in the United States has remained stable at 1.3% for the thirteenth consecutive quarter. As of the second quarter of 2025, approximately 1.4 million homes across the nation are deemed vacant, reflecting a consistent trend that showcases the resilience of the housing market in the face of economic challenges.

Insights from the ATTOM Report

The ATTOM report, released on May 29, 2025, analyzed extensive real estate data, focusing specifically on foreclosure status, equity, and owner-occupancy rates. Notably, the total number of properties currently undergoing the foreclosure process has risen to 222,358, marking a 4.8% increase from the first quarter of this year. However, it's worth noting this figure represents a 6.3% decrease year-over-year, indicating a gradual recovery from previous years where foreclosure rates were significantly higher.

Among these foreclosed properties, around 7,329 — or 3.3% — are classified as 'zombie properties'. Such properties are abandoned prior to completing the foreclosure process, resulting in negative implications for local neighborhoods, including declining property values. Lawn overgrowth, wear and tear, and deterioration of these homes can significantly impact the aesthetic and economic conditions of surrounding areas.

State Trends in Zombie Properties

Despite the overarching trend of stability in vacancy rates, there has been a slight uptick in zombie properties, which indicates a potential area of concern for some regions. The ATTOM report revealed increases in zombie properties across 30 states and the District of Columbia, predominantly reflecting minor fluctuations rather than large-scale increases. On the other hand, certain states such as North Carolina (52.5% increase) and Texas (51.9% increase) saw substantial year-over-year growth in reported zombie properties.
In contrast, states including Massachusetts and Maryland have seen reductions in zombie property counts, signifying a positive direction in those local markets.

Regional Vacancy Rate Insights

Examining vacancy rates by state reveals further insights. The states with the highest vacancy rates include Oklahoma (2.4%), Kansas (2.3%), and Alabama (2.2%). These figures contrast sharply with the lowest rates seen in states like New Hampshire (0.3%), and Vermont (0.4%), indicating regional disparities in housing availability and demand.

Metropolitan Area Trends

Approximately 55% of large metropolitan areas within the ATTOM analysis reported zombie foreclosure rates below the national average of 3.3%. Noteworthy is the Wichita, KS area, where a staggering 12.1% of pre-foreclosure homes are vacant. Conversely, many regions, such as Barnstable, MA and Atlantic City, NJ, recorded remarkably low zombie rates, underscoring inconsistencies across the nation.

Impact of Investor-Owned Homes

Investor-owned properties, accounting for nearly 24.8 million units nationwide, report a higher vacancy rate of 3.5%. States such as Indiana and Illinois lead with the highest investor-owned vacancy rates, indicating potential oversaturation or market inefficiencies in those areas. The data implies that investor strategies and economic conditions play a critical role in the overall housing market dynamics.

Conclusion

Rob Barber, the CEO of ATTOM, emphasizes the need for continuous monitoring of vacancy rates and foreclosure processes, stating, "It is encouraging to note the absence of a significant surge in vacant homes due to foreclosures, which bodes well for families and communities alike. However, the recent uptick in foreclosure filings must be approached with caution to avoid historical pitfalls similar to those experienced during the 2008 housing crisis."
With insights derived from rigorous data analysis and methodologies, the ATTOM report serves as a critical resource for understanding the ongoing developments and challenges within the U.S. housing market. As economic environments fluctuate, keeping an eye on vacancy rates, especially as we emerge from the pandemic, will help inform future buying and selling decisions.