Investors Hold the Majority of Vacant Homes Across the U.S.

A significant portion of the nation’s empty houses are in the hands of investors, according to a recent analysis of U.S. property data. The latest figures from ATTOM Data Solutions reveal that investors owned over 882,300 vacant homes as of the third quarter of 2024, representing about 63% of all unoccupied residential properties nationwide.

While investor-owned vacant homes account for just 3.6% of the roughly 24.9 million properties held by investment entities, they make up a substantial portion of the nearly 1.4 million houses without occupants at the end of September 2024. Put differently, nearly three times the share of all U.S. homes are empty due to investor ownership compared to typical housing stock.

State-by-State Vacancies

Vacancy rates among investor-owned properties vary significantly across the country. The highest concentrations were found in:

• Indiana – 7.2% of investor properties vacant
• Illinois – 6.1%
• Oklahoma – 5.9%
• Alabama – 5.9%
• Ohio – 5.8%

In contrast, the states with the lowest investor property vacancies include:

• New Hampshire – 0.9%
• Vermont – 1%
• Idaho – 1.2%
• Utah – 1.5%
• North Dakota – 1.5%

ATTOM’s data draws on publicly recorded real estate records, examining factors such as foreclosure status, equity positions, and owner-occupancy rates to provide a comprehensive view of vacant housing trends.

Foreclosures and “Zombie” Homes

The report also highlights ongoing foreclosure activity. During the third quarter, 222,318 properties nationwide were in some stage of foreclosure. Of those, approximately 7,500 roughly 3.4% were considered “zombie” homes, abandoned by their owners while still in the foreclosure process. This is a slight increase from the previous quarter, when 3.3% of pre-foreclosure properties were categorized as zombies.

Zombie and abandoned homes are a concern because they can depress surrounding property values and contribute to neighborhood decline. “Vacant and abandoned properties can start a negative spiral in a local housing market if left unchecked,” noted Rob Barber, CEO of ATTOM Data Solutions.

A Steady, But Uneven Market

Despite these concerns, Barber emphasized that the overall vacancy rate has remained relatively stable. “While some markets still exhibit unusually high rates of empty properties, the broader trend shows that buyers are actively filling homes as they come onto the market,” he said.

Quarter-over-quarter data show nuanced shifts across states. In 23 states, the number of abandoned homes increased slightly, while 23 states and the District of Columbia reported decreases in zombie properties. Overall, these fluctuations were modest, suggesting a generally resilient housing market.

Analysts note that the concentration of vacant homes in investor portfolios may reflect strategic buying and holding, rather than neglect. Many investors purchase properties for rental income, renovation, or resale, which can temporarily contribute to higher vacancy numbers. However, prolonged vacancies, especially in lower-demand markets, remain a potential risk factor for local communities.

Looking Ahead

The growing role of investors in the housing market highlights the tension between investment strategies and housing availability. While investor-owned homes can provide opportunities for renters and buyers, they can also exacerbate shortages in certain areas, particularly for first-time homeowners seeking affordable options.

As real estate markets continue to adjust to post-pandemic dynamics, monitoring the balance between investment holdings and owner-occupied housing will be critical. Policymakers, local governments, and community groups are increasingly aware of the impact of vacant properties on neighborhoods, prompting efforts to incentivize occupancy, reduce abandonment, and maintain healthy property values.

In a market where nearly two-thirds of unoccupied homes are investor-owned, the challenge remains: ensuring that investment activity supports vibrant, livable communities rather than contributing to prolonged vacancy and blight. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.