Things Not Always What They Seem In States With High Home Vacancy Rates

Vacant homes might seem like a sign of trouble for the U.S. housing market, but a closer look shows the reality is more nuanced. According to a new analysis of Census Bureau data by online lending marketplace LendingTree, nearly 15 million homes are vacant across the United States — but many aren’t abandoned, they’re just waiting to be used.

The study highlights that the national vacancy rate is 10.43%, representing roughly 14.9 million unoccupied homes. But state-level trends vary widely — with some of the highest vacancy rates actually found in scenic, recreation-heavy locations like Maine (21.09%), Vermont (20.06%), and Alaska (18.24%).

“Too few vacancies make a challenging market for renters, but too many could mean declining demand and slower economic growth.” —Matt Schulz, Chief Consumer Finance Analyst, LendingTree

“These homes may have been sold and are just waiting for their new owner to move in or they may be seasonal rental properties, for example,” said Matt Schulz, LendingTree’s chief consumer finance analyst. “This doesn’t mean that millions of abandoned and dilapidated homes are littering the streets of America’s biggest cities.

Indeed, Maine alone — the state with the highest vacancy rate — has 157,467 vacant homes, many likely used for seasonal or recreational purposes. It’s a trend echoed in other rural or tourism-heavy regions. Alaska, for example, has 59,745 vacant homes, and Vermont has 67,606.

Schulz warns that balance is key. “Too few vacancies make a challenging market for renters, but too many could mean declining demand and slower economic growth,” he said.

A Tale of Two Inventories

Interestingly, the states with the lowest vacancy rates — Washington (7.42%), Oregon (7.46%), and Connecticut (7.54%) — still have far more vacant homes in raw numbers than those with the highest rates. That’s because these states have far larger housing inventories overall.

Washington, for instance, has 3.26 million total housing units, more than four times that of Maine’s 746,552. So, even with a lower vacancy rate, Washington has over 242,000 vacant homes — far more than Maine’s roughly 157,500 vacant houses.

Vacancy Trends: Falling Almost Everywhere

From 2022 to 2023, vacancy rates declined in every state but one. The steepest drops were in Wyoming (-0.89 percentage points), Alabama (-0.85), and both North Dakota and Montana (-0.77 each). Only Washington saw a slight increase — up 0.05 percentage points — possibly reflecting local market shifts or short-term turnover.

High Vacancy Equals Lower Prices (But Not Always)

The study also underscores a clear trend: States with lower vacancy rates typically have higher home values. The top 10 lowest-vacancy states boast an average median home value of $408,382, while the 10 highest-vacancy states average just $247,850.

That gap reflects not just supply and demand, but also factors like income levels and urban density — factors that, according to LendingTree’s Schulz, help explain the divide.

“Bigger incomes likely mean a wider variety of options… even with housing prices that are higher,” Schulz said, noting, “The states with the highest vacancy rates tend to be a little more sparsely populated.” 

“That sparseness potentially means more land on which to build,” he added, “which can potentially lead to oversupply and then more vacancies.”

Still, there are exceptions. States like New Hampshire ($367,200), Alaska ($333,300), and Florida ($325,000) all have above-average home values despite high vacancy rates — again, largely driven by seasonal or recreational housing.

Bottom Line

Not all vacancies are created equal. Some reflect market slack — but others reveal how and where Americans vacation, invest, or simply wait. For would-be homebuyers and the lenders and other mortgage professionals they work with, the headline numbers only tell part of the story.