Despite a steady nationwide vacancy rate, a subtle but growing trend in so-called “zombie” homes is worth watching. According to ATTOM’s latest data, 1.3% of all U.S. homes remain vacant—a figure that’s held remarkably steady for over three years. But while most markets are stable, the number of zombie foreclosures—homes that are vacant and in the foreclosure process—has crept up year-over-year.
Zombie properties still make up a small portion of the market (just 3.3% of homes in foreclosure), but they’re up from 2.9% this time last year. That’s not enough to panic over, but it does signal some stress beneath the surface, especially in pockets of the Midwest and South. Metro areas like Peoria, Cleveland, and Toledo are seeing double-digit percentages of pre-foreclosure homes sitting vacant—raising concerns about local property values and neighborhood stability.
The good news? These properties aren’t sitting idle for long. As ATTOM’s CEO put it, most are getting scooped up fast—unlike the post-2008 crisis era, when distressed homes often sat empty for months or years.
In short, while vacancy rates remain low, the quiet uptick in zombie foreclosures is a trend worth keeping an eye on. It’s a reminder that beneath the national averages, there are very different stories playing out market by market.