Midwest Cities Show Highest Zombie Foreclosure Rates in Q1 2026

Zombie foreclosures 2026 remained largely unchanged at the start of the year, though several Midwest metro areas continue to show higher concentrations than the national average.

According to the latest Vacant Property and Zombie Foreclosure Report from ATTOM, about 1.33% of all residential properties in the United States were vacant in the first quarter of 2026. That equals nearly 1.4 million homes and is almost identical to vacancy levels recorded in the prior quarter and the same period last year.

Foreclosure Activity and Zombie Homes

Out of roughly 104.8 million residential properties nationwide, 230,401 were in some stage of foreclosure at the time of the report.

Of those properties, 7,540 were classified as zombie homes. A zombie property is a home whose owner has vacated it before the foreclosure process is complete.

That means 3.27% of homes in foreclosure were abandoned. The figure was nearly the same as last quarter and slightly lower than the 3.34% reported one year earlier.

ATTOM compiles its findings using publicly recorded foreclosure data, equity status, and occupancy information matched with updated vacancy data.

Vacancy Rates Remain Low Overall

ATTOM CEO Rob Barber noted that overall vacancy rates remain low, which helps explain why home prices have stayed firm despite affordability pressures.

Low vacancy levels also reduce the risk of neighborhood decline, which was a major issue during the housing crisis more than a decade ago.

The report showed that zombie property counts fell in 28 states and the District of Columbia compared to the prior quarter.

States With Rising and Falling Zombie Counts

Among states with at least 50 zombie properties, the largest quarterly increases were reported in:

• Maryland (up 45.6% to 115)
• South Carolina (up 34% to 130)
• Oklahoma (up 26.3% to 72)
• California (up 15.1% to 313)
• Nevada (up 11.9% to 66)

The largest quarterly declines were seen in:

• Georgia (down 31.1% to 51)
• North Carolina (down 25.6% to 61)
• Kansas (down 23.5% to 62)
• Texas (down 13.7% to 177)
• Iowa (down 13.1% to 93)

States with the highest overall home vacancy rates included Oklahoma (2.4%), Kansas (2.4%), Alabama (2.2%), Missouri (2.1%), and West Virginia (2.1%).

Meanwhile, the lowest vacancy rates were recorded in New Hampshire (0.3%), Vermont (0.4%), New Jersey (0.5%), Connecticut (0.5%), and Idaho (0.6%).

Midwest Metros Lead in Zombie Rates

Midwest metro areas continue to post the highest zombie foreclosure rates.

Among 27 metropolitan areas with sufficient data, the highest zombie rates were in:

• Cleveland, Ohio (9.9%)
• Baltimore, Maryland (9.3%)
• St. Louis, Missouri (8.6%)
• Akron, Ohio (7.4%)
• Indianapolis, Indiana (6.5%)

By contrast, the lowest metro zombie rates were found in:

• New York City (1.6%)
• Philadelphia (1.7%)
• Los Angeles (2.2%)
• Orlando, Florida (2.2%)
• Lakeland, Florida (2.4%)

The concentration in Midwest cities reflects longer-term economic and housing trends, including older housing stock and slower population growth in some regions.

Investor-Owned Properties Show Higher Vacancy

The report also examined homes owned by institutional investors. Of approximately 25.2 million investor-owned homes nationwide, about 3.5% were vacant.

States with the highest vacancy rates among investor-owned properties were:

• Indiana (7.2%)
• Illinois (6.2%)
• Alabama (6%)
• Kansas (6%)
• Oklahoma (5.9%)

The lowest investor vacancy rates were in New Hampshire (0.8%), Vermont (1%), Idaho (1.3%), North Dakota (1.5%), and Maine (1.5%).

ZIP Codes With the Highest Zombie Concentration

ATTOM reviewed 2,237 ZIP codes with at least 1,000 properties and 25 homes in pre-foreclosure.

The highest zombie foreclosure rates were reported in:

• 21217 in Baltimore, Maryland (44%)
• 44108 in Cleveland, Ohio (41.1%)
• 33708 in St. Petersburg, Florida (39.3%)
• 34652 in New Port Richey, Florida (35.5%)
• 92262 in Palm Springs, California (32.5%)

These localized concentrations highlight how zombie properties can cluster in specific neighborhoods even when national numbers remain stable.

What This Means for the Housing Market

The stability in zombie foreclosures 2026 suggests that widespread abandonment is not reemerging as a national concern.

While foreclosure activity remains present, vacancy rates among those properties are relatively contained. That reduces the risk of large-scale neighborhood deterioration.

However, certain Midwest markets continue to experience elevated levels compared to coastal metros. Monitoring these areas will remain important as interest rates, affordability pressures, and economic conditions evolve.

For now, national vacancy and zombie foreclosure rates appear steady, even as regional differences persist. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.