Vacancy and ‘Zombie Foreclosure’ Rates Decline as Housing Supply Remains Tight

The rate of vacant and foreclosed “zombie” properties has fallen slightly throughout the country as the U.S. still faces housing scarcity.

A new report from real estate analytics provider ATTOM shows that the share of vacant properties in the United States, which accounts for all unoccupied properties, regardless of ownership type or foreclosure status, was 1.2% in the fourth quarter of 2026. This figure is down from 1.3% in both the third quarter this year and fourth quarter last year.

ATTOM found 269,195 properties were in the foreclosure process in the fourth quarter, of which 8,040, or 3%, were considered “zombies,” or properties that were abandoned by the owner prior to the completion of the foreclosure process.

That percentage is down slightly from the same quarter in 2025, when 3.3% of properties in the foreclosure process were zombies.

Despite the national decrease in the zombie share of foreclosures, 29 states saw the number of zombie properties increase from the third quarter to the fourth quarter of 2026. Still, only a very small portion of the country’s residential properties are vacant or abandoned.

“The fourth-quarter data showed modest declines in both vacancy and zombie foreclosure rates nationwide,” said Rob Barber, CEO of ATTOM.  “While trends vary from state to state, vacant and abandoned homes continue to represent a relatively small share of the nation’s housing stock.”

The largest percentage increases in zombie properties from quarter three to quarter four were seen in Wisconsin, up 20.9% to 52; Maryland, up 19.2% to 180; Pennsylvania, up 17.2% to 252; and Texas, up 15.7% to 192.

The largest decreases from quarter to quarter were found in Arizona, down 34.9% to 56; Florida, down 19.6% to 2,220; California, down 10.4% to 267; South Carolina, down 9.6% to 141; and Oklahoma, down 8.9% to 82.

Even with vacancies decreasing, the housing supply throughout the country remains tight.

March research from Realtor.com® estimates that the U.S. housing supply gap has surpassed 4 million units.

The housing shortage is reflected in recent years’ climbing prices and the median age of first-time homebuyers, which rose to 40 in 2025—a sharp increase from 33 in 2020, according to the National Association of Realtors®.

The shortfall in necessary housing is the result of more than a decade of building fewer homes than needed.

The shortage of new residential construction continued this fall, with September home starts down 5.2% from August and down 7.4% from September 2025. September completions were down 2.2% from August and down an eye-watering 14% from last year, according to Realtor.com data.

While many builders are offering price cuts and incentives to get inventory moving, many potential buyers are homeowners holding on to their currently lower interest rates, and first-time buyers who are hesitant to jump in at current rates.

While snapping up a zombie property could be an attractive option to get into a home, inexperienced buyers should be careful of being drawn in by an affordable price tag.

In addition to often needing extensive TLC, zombie properties can come with a lengthy process of determining ownership and resolving insurance and tax issues.

“For the right buyer, these properties can create an opportunity to bring a neglected home back into use,” real estate investor Jesse Wyatt tells Realtor.com. “But there is a big difference between seeing potential and rushing into a mess. A buyer should never assume that an empty property is available, abandoned by the lender, or free of complications.”