Zombie Foreclosures Show Remarkable Resilience in U.S. Housing Market Despite Declining Trend
In the first quarter of 2025, ATTOM has unveiled its Vacant Property and Zombie Foreclosure Report, highlighting a noteworthy trend in the housing market. The statistics indicate that there are 1.4 million vacant residential properties in the United States, accounting for just 1.3% of the total housing inventory. This ratio remains consistent with the previous quarter, marking a negligible annual increase. The report shows that, despite fears of a potential surge in foreclosures after the pandemic-related moratoriums lifted, the overall foreclosure activity continues to subside.
As of this quarter, there are 212,268 residential properties undergoing foreclosure proceedings, representing a 1.5% decline from the previous quarter and a significant 12.6% decrease from the same period in 2024. This reduction marks five consecutive quarters of declining foreclosure activity, which can be attributed to various factors, including rising property prices and limited housing stock.
Among these properties, a mere 7,094 are classified as zombie foreclosures – homes abandoned by owners before the completion of the foreclosure process. This figure displays a slight decrease from the previous quarter but is a 3.3% drop from the same quarter last year. The rarity of these zombie properties suggests that the majority of neighborhoods across the U.S. are managing to avoid the blight that such abandoned homes typically bring. As Rob Barber, CEO of ATTOM, aptly noted, finding a zombie foreclosure in most communities would indeed require significant effort.
The data demonstrates a long-term downward trend in zombie properties, which currently stands at one zombie foreclosure for every 14,668 homes in the U.S. This ratio represents a significant improvement over previous years, particularly from a peak of one in 11,412 recorded in late 2023. Such low levels of zombie foreclosures are a testament to the sustained growth in the U.S. housing market, which has experienced over a decade of expansion.
ATTOM's analysis reveals that while some states have observed increases in zombie properties, the majority have experienced a decline or stability in their numbers. For instance, notable reductions were seen in Maryland, Georgia, and California, where zombies decreased by substantial percentages from the previous year. Conversely, Missouri and Indiana saw increases, though they remain relatively small.
The report further highlights the overall vacancy rates for residential properties, which have remained stagnant at around 1.3% for 12 consecutive quarters. States such as Oklahoma and Kansas are leading in vacancy rates, while New Hampshire holds the lowest at just 0.34%. This balance in vacancy rates underscores the stability of the housing market despite the challenges posed by foreclosures.
The highlights from ATTOM's findings indicate a marked lack of zombie foreclosures in most metropolitan regions. Areas like Peoria, IL, and Wichita, KS, have reported the highest rates of zombie foreclosures among properties in the foreclosure process; however, these percentages remain relatively low compared to the overall housing inventory.
Moreover, the figures reveal that a significant portion of the investor-owned homes remains vacant, with states like Indiana and Illinois reporting the highest vacancy rates among these properties. The presence of vacant bank-owned homes is also critical, with about 14% sitting empty, impacting local markets considerably.
As we analyze these trends, it becomes evident that the currently robust housing market fosters a decreasing presence of zombie foreclosures. This positive trajectory is bolstered by rising equity from increased home values and a demand that continues to outpace supply. High investor interest in available properties further mitigates the potential for blight caused by abandoned homes, suggesting that homeowners and renters can continue to benefit from this ongoing market strength.
In conclusion, as the 2025 housing market unfolds, stakeholders can remain optimistic about the continued decline of zombie properties, which provides a promising outlook for the economy and real estate landscape alike.
As of this quarter, there are 212,268 residential properties undergoing foreclosure proceedings, representing a 1.5% decline from the previous quarter and a significant 12.6% decrease from the same period in 2024. This reduction marks five consecutive quarters of declining foreclosure activity, which can be attributed to various factors, including rising property prices and limited housing stock.
Among these properties, a mere 7,094 are classified as zombie foreclosures – homes abandoned by owners before the completion of the foreclosure process. This figure displays a slight decrease from the previous quarter but is a 3.3% drop from the same quarter last year. The rarity of these zombie properties suggests that the majority of neighborhoods across the U.S. are managing to avoid the blight that such abandoned homes typically bring. As Rob Barber, CEO of ATTOM, aptly noted, finding a zombie foreclosure in most communities would indeed require significant effort.
The data demonstrates a long-term downward trend in zombie properties, which currently stands at one zombie foreclosure for every 14,668 homes in the U.S. This ratio represents a significant improvement over previous years, particularly from a peak of one in 11,412 recorded in late 2023. Such low levels of zombie foreclosures are a testament to the sustained growth in the U.S. housing market, which has experienced over a decade of expansion.
ATTOM's analysis reveals that while some states have observed increases in zombie properties, the majority have experienced a decline or stability in their numbers. For instance, notable reductions were seen in Maryland, Georgia, and California, where zombies decreased by substantial percentages from the previous year. Conversely, Missouri and Indiana saw increases, though they remain relatively small.
The report further highlights the overall vacancy rates for residential properties, which have remained stagnant at around 1.3% for 12 consecutive quarters. States such as Oklahoma and Kansas are leading in vacancy rates, while New Hampshire holds the lowest at just 0.34%. This balance in vacancy rates underscores the stability of the housing market despite the challenges posed by foreclosures.
The highlights from ATTOM's findings indicate a marked lack of zombie foreclosures in most metropolitan regions. Areas like Peoria, IL, and Wichita, KS, have reported the highest rates of zombie foreclosures among properties in the foreclosure process; however, these percentages remain relatively low compared to the overall housing inventory.
Moreover, the figures reveal that a significant portion of the investor-owned homes remains vacant, with states like Indiana and Illinois reporting the highest vacancy rates among these properties. The presence of vacant bank-owned homes is also critical, with about 14% sitting empty, impacting local markets considerably.
As we analyze these trends, it becomes evident that the currently robust housing market fosters a decreasing presence of zombie foreclosures. This positive trajectory is bolstered by rising equity from increased home values and a demand that continues to outpace supply. High investor interest in available properties further mitigates the potential for blight caused by abandoned homes, suggesting that homeowners and renters can continue to benefit from this ongoing market strength.
In conclusion, as the 2025 housing market unfolds, stakeholders can remain optimistic about the continued decline of zombie properties, which provides a promising outlook for the economy and real estate landscape alike.
Topics Business Technology）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.