US Residential Vacancy and Zombie Foreclosure Rates Dip
National vacancy and zombie foreclosure rates both declined in the fourth quarter of 2026 as housing inventory stabilized.
Updated on Oct. 28, 2026 in Commercial
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 both dipped in the fourth quarter of 2026. The overall residential vacancy rate reached 1.2 percent, marking a slight decline from the previous quarter.
Why it matters
Changes in vacancy and zombie foreclosure rates are key indicators of housing market health and neighborhood stability. Lower rates typically reflect a more active real estate market with fewer abandoned properties falling into long-term neglect.
The national zombie foreclosure rate dropped to 3 percent during the fourth quarter of 2026, down from 3.3 percent in the third quarter. Out of 269,195 total properties in the foreclosure process, 8,040 were identified as zombie properties.
The players
ATTOM
A property data provider that analyzes national real estate trends including vacancy, foreclosure, and ownership patterns.
The details
A zombie property occurs when a home is in the foreclosure process but remains vacant, often sitting in limbo without active maintenance or occupancy. Researchers at ATTOM determined these rates by matching publicly recorded foreclosure and ownership data against monthly residential vacancy metrics. While national trends improved, the data shows distinct regional volatility, with zombie foreclosure rates increasing in 29 states during the quarter.
Timeline
Q3 2026: The national residential vacancy rate stood at 1.3 percent.
Q4 2026: The national residential vacancy rate declined to 1.2 percent.
The Home Front
These vacancy and zombie foreclosure metrics provide a vital snapshot of how distressed properties influence broader residential inventory levels. Tracking these rates helps homeowners and local officials understand shifts in neighborhood stability and housing supply pressures.
Homeowners should keep an eye on neighborhood properties that appear abandoned, as these can impact local property values and community safety. If you live near a vacant home that has fallen into disrepair, reach out to your local municipal code enforcement office to report maintenance issues.
The takeaway
While national vacancy rates show improvement, homeowners should monitor their immediate area for signs of neglected properties that could suggest a zombie foreclosure. Staying informed on local property tax and code enforcement resources can help mitigate the impact of distressed homes on your neighborhood.
Further reading
For more on market inventory and property trends, visit our Commercial section.
Live Poll
Is the decline in vacant and zombie homes a sign of a healthier national housing market?
