Residential Vacancy and Zombie Foreclosure Rates Fall

The national zombie foreclosure rate dropped to 3 percent in Q4, signaling a slight shift in housing market stability.

Updated on Oct. 28, 2026 in Commercial

Residential Vacancy and Zombie Foreclosure Rates Fall

Live Poll

Is the decline in vacant and zombie homes a sign of a healthier national housing market?

National residential vacancy and zombie foreclosure rates fell during the fourth quarter of 2026. This data reflects a slight improvement in the housing market, as the number of abandoned properties currently in the foreclosure process declined.

Why it matters

Changes in vacancy and zombie foreclosure rates signal shifts in housing market stability and the effectiveness of current foreclosure processes. Monitoring these figures helps homeowners and local communities gauge the level of abandoned housing stock that can influence property values and neighborhood appeal.

The national zombie foreclosure rate dropped to 3 percent in the fourth quarter of 2026, down from 3.3 percent in the prior quarter. There were 8,040 zombie properties identified nationwide out of 269,195 total homes in the foreclosure process.

The players

ATTOM

A property data provider that tracks residential foreclosure, equity, and vacancy trends for real estate markets.

The details

Zombie properties are homes that are in the foreclosure process but have been abandoned by their owners. The report analyzed 105.1 million residential properties by matching foreclosure, equity, and owner-occupancy status with monthly vacancy data. While national rates declined, the prevalence of these properties remains geographically uneven, with 29 states experiencing quarter-over-quarter increases in zombie property rates.

The national residential vacancy rate reached 1.3 percent in Q3 2026.
The national residential vacancy rate fell to 1.2 percent in Q4 2026.

Money Landscape

The 2026 property data reflects a cooling trend in vacancy rates across the national housing market compared to the previous quarter. This shift sits against a broader backdrop of institutional investment, where large entities currently hold 30.6 million homes with a 2.7 percent vacancy rate.

Homeowners in areas with high zombie foreclosure rates may experience impacts on local property values due to the presence of vacant, neglected inventory. Prospective buyers and local stakeholders should monitor regional vacancy trends when evaluating the stability of their property investments.

The takeaway

While national vacancy rates are trending downward, local market conditions continue to vary significantly. Homeowners concerned about abandoned properties in their neighborhood should consult with their local property tax or code enforcement office to track the status of specific distressed assets.