‘Zombie Properties’ Tick Up Slightly, But U.S. Housing Vacancies Stay Stable

A new report from ATTOM shows that the overall number of vacant homes in the U.S. remained steady during the second quarter of 2025, reflecting continued stability in the housing market. However, there’s a slight but noticeable uptick in so-called “zombie properties” vacant homes caught in the early stages of foreclosure.

According to ATTOM’s Q2 2025 Vacant Property and Zombie Foreclosure Report, approximately 1.3% of residential properties nationwide around 1.4 million homes were vacant, marking the 13th straight quarter with no major shift in the vacancy rate. That’s encouraging news for homeowners and communities alike, as high vacancy rates can drag down local property values.

But while the broader market remains solid, there are early signs of trouble in some areas.

“We’re still in a healthy place overall, but we’re watching foreclosure activity closely,” said Rob Barber, CEO of ATTOM. “The small rise in zombie properties is something we don’t want to ignore.”

What Are Zombie Properties?

Zombie properties are homes that have been abandoned by their owners as they head into foreclosure. These houses often sit unoccupied for extended periods and can become eyesores or safety hazards in otherwise stable neighborhoods.

In Q2 2025, zombie homes made up 3.3% of all properties in the foreclosure process, totaling 7,329 nationwide. That’s nearly unchanged from the first quarter of the year but slightly up from 2.9% in Q2 2024. Overall, just one in every 14,207 homes in the U.S. falls into this category, a figure that remains relatively low by historical standards.

“It’s nothing like the levels we saw during the 2008 housing crisis, but it’s worth keeping an eye on,” Barber added. “Fortunately, many of these homes are being resold quickly and not sitting vacant for long.”

Foreclosures Inch Up, Especially in Select States

Foreclosure activity rose 4.8% between Q1 and Q2 of this year, breaking a five-quarter streak of declines. Despite this quarter-over-quarter increase, foreclosures are still 6.3% lower than this time last year.

The number of zombie properties increased in 30 states plus Washington, D.C., though most gains were modest. The states that saw the largest year-over-year jumps include:

• North Carolina – up 52.5%
• Iowa – up 52.1%
• Texas – up 51.9%
• South Carolina – up 43.8%
• Kansas – up 29%

Conversely, several states saw their zombie property numbers drop. The biggest declines came from:

• Massachusetts – down 48.7%
• Maryland – down 22.1%
• New Jersey – down 17.6%
• California – down 8.9%
• Illinois – down 8.8%

Where Are Zombie Homes Most Common?

Among major U.S. metro areas, Wichita, Kansas (12.1%), Peoria, Illinois (11.8%), and Toledo, Ohio (10.2%) recorded the highest concentrations of zombie properties. These cities are facing localized economic pressures that may be contributing to the increase.

On the other hand, cities like Barnstable, Massachusetts (0%) and Atlantic City, New Jersey (0.2%) reported virtually no zombie property presence.

Vacancy Rates Remain Most Elevated in the South

While the overall national vacancy rate is holding steady, certain regions continue to have higher rates than others. Southern states led the pack, with:

• Oklahoma at 2.4%
• Kansas at 2.3%
• Alabama at 2.2%

By contrast, the Northeast remains the tightest housing region, with New Hampshire (0.3%), Vermont (0.4%), and New Jersey (0.5%) reporting the lowest rates of vacant homes.

Bottom Line:

The U.S. housing market is still on stable footing, with vacancy rates remaining low nationwide. But the slight increase in zombie properties serves as a warning sign that financial stress is affecting some homeowners. As foreclosure activity edges up, housing experts and policymakers will be keeping a close watch hoping to avoid a return to the housing struggles of past decades. For more information about Finance Visit Nadlan Capital Group.