Zombie Foreclosures Edge Up, Vacancies Hold Steady – NMP Skip to main content

Zombie Foreclosures Edge Up, Vacancies Hold Steady

Aug 21, 2025
There were 1.4 million vacant single-family homes and condos on the market in the third quarter, representing 1.52 percent of all residential properties

Of the 24.9 million investor-owned homes nationwide, 3.6% were vacant.

The number of vacant homes in the U.S. remained steady in the third quarter of 2025, even as so-called “zombie” foreclosures inched higher, according to ATTOM’s latest Vacant Property and Zombie Foreclosure Report.

ATTOM found that about 1.39 million residential properties—roughly 1.3% of all U.S. homes—were vacant in Q3, a rate that has held consistent for more than three years amid sustained housing demand. Within that pool, 222,318 homes were in the foreclosure process. Of those, 7,519 properties, or 3.38%, were categorized as zombie foreclosures—abandoned by their owners while still working through the legal process. That share is up slightly from 3.30% in the second quarter and 3.14% a year ago.

“Vacant and zombie homes can hurt the value of surrounding properties and start a negative spiral in a local housing market,” said Rob Barber, CEO of ATTOM. “While we’ve seen the rate of zombie homes tick up a tiny bit this quarter, the overall rate of vacant homes and homes in the foreclosure process has remained remarkably steady.”

State and Metro-Level Trends

The report showed modest quarter-to-quarter shifts in zombie foreclosures across states, with increases in 23 states and declines in 23 others plus Washington, D.C. Most changes were in the single- or low double-digits. Four states saw no change.

Year-over-year, the sharpest increases in zombie rates occurred in:

  • Colorado: up 115%, from 27 to 58 zombie properties
  • Washington: up 114%, from 29 to 62
  • Iowa: up 84%, from 64 to 118
  • North Carolina: up 80%, from 50 to 90
  • Oklahoma: up 72%, from 43 to 74

Meanwhile, notable declines were recorded in Georgia (-25%), New Jersey (-21%), Illinois (-17%), and New York (-10%).

Vacancy rates varied widely by region. Oklahoma (2.4%), Kansas (2.3%), and Alabama (2.2%) posted the highest overall vacancy rates, while New Hampshire (0.35%), Vermont (0.41%), and New Jersey (0.51%) had the lowest.

Large metro areas generally outperformed the national average, with 57% showing zombie foreclosure rates below 3.38%. Wichita, Kansas (12.7%) had the highest share of zombie foreclosures among major metros, followed by Peoria, Illinois (12.3%) and Youngstown, Ohio (10.1%). Nashville, Tennessee recorded none.

Investor-Owned Properties

The report also highlighted the role of investors. Of the 24.9 million investor-owned homes nationwide, 3.6% (882,336) were vacant. Indiana (7.2%), Illinois (6.1%), and Oklahoma (5.9%) had the highest vacancy rates for investor-owned homes, while New Hampshire (0.9%) and Vermont (1%) ranked lowest.

Despite localized concerns, Barber noted that most housing markets are absorbing vacant properties quickly. “While there remain some markets with worryingly high rates of vacancies, as a whole it appears that the nation’s buyers are quickly filling homes that become available,” he said.

About the author
Published
Aug 21, 2025
Inventory Recovery Fails To Revive Purchase Market

Existing-home supply reached its highest level since 2019, but elevated payments and economic uncertainty pushed sales to a 14-month low

Sep 11, 2026
Rising Insurance Costs Complicate Mortgage Qualification

Homeowners who switched carriers saved $440 a year on average, giving originators another affordability variable to address early

Sep 11, 2026
Non-QM Captures More Than 11% Of Mortgage Lock Volume

Investor and DSCR loans drive the segment’s growth as conforming lending loses ground

Sep 09, 2026
Before Mortgage Can Be AI-Ready, We Need To Be Data-Ready

AI’s potential depends on accurate, consistent, and trustworthy data — and mortgage companies must build that foundation first

Sep 08, 2026
Crypto-Backed Home Financing Comes With New Trade-Offs

Better may reuse bitcoin pledged by mortgage borrowers, while competing loan structures expose customers to price-driven liquidation

Sep 08, 2026
Nearly Half Of Americans Would Consider A 3D-Printed Home

Consumer interest is growing, but concerns about durability, appraisals, code compliance, and resale value could complicate financing

Sep 03, 2026