Zombie Foreclosures Rise Slightly Amidsteadily Low U.S. Vacancy Rates

Overview

In a recent report by ATTOM, a prominent curator of real estate data, the third quarter of 2025 has indicated a slight uptick in 'zombie' foreclosures even as the nationwide home vacancy rate stays stable. This is a significant indicator of the ongoing dynamics within the U.S. housing market.

Stability in Vacancy Rates

According to the report, the national home vacancy rate has held steady at 1.3% for 14 consecutive quarters, which translates to approximately 1.4 million residential properties being vacant. The impressive consistency of the vacancy rate suggests a resilient housing market, characterized by an increased demand for homes. Despite the slight movement in zombie foreclosure statistics, the overall stability signifies a competitive real estate landscape where buyers are actively engaging with available homes.

Zombie Foreclosure Statistics

The ATTOM report highlights that 222,318 properties were undergoing foreclosure processes this past quarter. From this number, about 3.38%—which equals 7,519 properties—were identified as 'zombie' homes, abandoned by their owners and left unmaintained. This increase from the previous quarter's rate of 3.30% signals a minor but concerning trend in properties that could adversely affect local real estate values.

CEO Rob Barber noted the impacts that vacant and zombie homes can have on neighboring properties, suggesting they could generate a negative spiral in local housing markets. He emphasizes that this slight rise in zombie homes is overshadowed by the overall stability in the number of vacant homes as well as those in the foreclosure process.

Variations Across States

In an analysis of various states, ATTOM found that 23 states reported a rise in zombie properties, albeit mostly in small increments. Notable among the states that observed a significant year-over-year rise were Colorado and Washington, which reported increases of 115% and 114%, respectively. Conversely, others like Georgia and New Jersey experienced declines in their zombie property counts, thus providing a mixed picture across the nation.

Recent Trends in Vacancy Rates

The analysis breaks down vacancy rates by state, revealing that Oklahoma recorded the highest rate at 2.4%, followed closely by Kansas and Alabama. On the opposite end, New Hampshire boasts the lowest vacancy rate at 0.35%, suggesting a housing market that is better at retaining occupants.

Urban Areas and Market Dynamics

Out of the 135 major metro areas analyzed, 57% had lower zombie foreclosure rates than the national average. Interesting trends emerged in specific urban locations, with Wichita, Kansas showing the highest percentage of vacant pre-foreclosure homes. In contrast, Nashville, Tennessee reported a 0% rate, indicating a strong market demand.

The Investor Angle

The report also noted that among the 24.9 million investor-owned properties, 3.6% remain vacant. States such as Indiana and Illinois reported the highest vacancy rates within this category, highlighting a sector that is often more susceptible to fluctuating demand.

Conclusion

Overall, while the rise in zombie foreclosures is a point of concern, the stable vacancy rate signals a competitive market where buyers are effectively seizing opportunities. With varying trends across states and cities, it remains crucial for homeowners, investors, and potential buyers to stay informed about local market conditions to navigate their paths more strategically in this evolving landscape.