Zombie-Property Trends Follow Decrease in Overall Foreclosure Cases. ATTOM, a leading curator of property data and real estate analytics, has released its fourth-quarter 2024 Vacant Property and Zombie Foreclosure Report. It highlights that around 1.4 million residential properties in the U.S. are vacant. This figure represents 1.3 percent, equivalent to one in 77 homes nationwide, showing minimal change from the previous quarter and a slight increase from the last year.

The analysis involves publicly recorded real estate data, including foreclosure status, equity, and owner-occupancy status, matched against monthly vacancy updates. Reports reveal that 215,601 residential properties are under foreclosure proceedings in the fourth quarter, marking a 3.3 percent decrease from the third quarter and a 32.8 percent drop from the same period in 2023. Among these are about 7,100 vacant properties, identified as zombie foreclosures—pre-foreclosure properties abandoned by owners. This number shows a slight quarterly increase but a 20.2 percent annual decline.

Zombie properties consistently represent a minor fraction of the nation’s housing stock, now at just one in every 14,591 homes, mirroring the last quarter’s ratio of one in 14,776 and significantly down from one in 11,412 in the last year’s fourth quarter. Despite the potential for vandalism and neighborhood decline, zombie foreclosures continue to have minimal impact on most local markets, a phenomenon influenced by the ongoing housing market boom entering its 13th year.

CEO Rob Barber comments on the near extinction of zombie foreclosures from a once significant issue post-Great Recession to almost negligible today, attributing it to record home prices sustaining high equity levels and declining foreclosure cases. Additionally, tight housing supply ensures that abandoned properties are swiftly acquired by buyers. In the fourth quarter of 2024, 7,109 residential properties potentially facing foreclosure have been abandoned, rising slightly by 1.5 percent from the third quarter but down from 8,903 in the prior year.

Quarterly increases in zombie properties have been observed across 30 states, generally rising by under 20, whereas numbers have stayed stable or decreased in 20 states. Notable annual decreases in states with at least 50 zombie homes a year ago include Connecticut (down 87 percent), Iowa (down 76 percent), North Carolina (down 73 percent), New Mexico (down 72 percent), and Oklahoma (down 71 percent). Conversely, Kansas, Arizona, Florida, Texas, and New Jersey recorded increases.

The overall U.S. vacancy rate for residential properties remains nearly stable, consistently around 1.3 percent for 11 quarters. The current rate is 1.31 percent, consistent with the previous quarter and slightly up from 1.27 percent last year. Oklahoma, Kansas, Missouri, Alabama, and West Virginia show the highest vacancy rates, while the lowest are in New Hampshire, Vermont, New Jersey, Idaho, and Connecticut.

Noteworthy findings from the fourth quarter analysis indicate that among 170 metros with at least 100,000 homes, Peoria, Toledo, Wichita, Evansville, and Canton have the highest zombie foreclosure rates. Major metros with at least 500,000 homes and significant zombie foreclosures are Cleveland, Indianapolis, St. Louis, Kansas City, and Baltimore.

Throughout the U.S., approximately 3.5 percent of the 25 million investor-owned homes were vacant in the fourth quarter, with Indiana, Illinois, Alabama, Oklahoma, and Kansas presenting the highest levels. Among around 12,000 foreclosed, bank-owned homes, 13.9 percent are vacant, notably in Missouri, Ohio, Indiana, Illinois, and Michigan.

U.S. counties with substantial foreclosure processes show high zombie-foreclosure rates in Broome County, NY; Marion County, IN; Cuyahoga County, OH; Niagara County, NY; and Pinellas County, FL. In zip codes where zombie properties account for significant portions of all homes, most are in New York, notably in Peoria, IL, and Waverly, NY.

The methodology involved analyzing county tax assessor data for over 103 million residential properties for vacancy and foreclosure status. Only regions meeting specific criteria, such as the number of residential properties or properties in foreclosure, were included. ATTOM provides comprehensive property data and analytics, supporting innovation and efficiency across various sectors through a robust data management process and diverse delivery solutions. This high-quality data supports a wide array of industries, offering solutions optimized for AI applications.