Zombie Foreclosures Drop 20%

The dreaded "zombie foreclosures" - those abandoned homes stuck in foreclosure limbo - continue to fade into the rearview mirror of the housing market's challenges. According to ATTOM's latest Q4 2024 Vacant Property and Zombie Foreclosure Report, these properties now represent just one in every 14,591 homes across the U.S.

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Key Findings

• Only 7,100 zombie foreclosures exist nationwide - down 20.2% from last year
• Overall vacant properties hold steady at 1.3% (about 1.36 million homes)
• Pre-foreclosure properties dropped 32.8% compared to Q4 2023
• Investor-owned vacant properties sit at 3.5% nationally

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Where Zombies Still Lurk

While zombie foreclosures are becoming increasingly rare, some areas still see higher concentrations than others. The highest rates among major metros can be found in:

• Cleveland, OH (8.5% of foreclosures)
• Indianapolis, IN (8.4%)
• St. Louis, MO (8.4%)
• Kansas City, MO (6.5%)
• Baltimore, MD (6.4%)

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The Big Picture

"The near-total disappearance of zombie foreclosures has been and still is one of the more subtle, but important benefits of the country's soaring housing market," notes Rob Barber, CEO for ATTOM. The tight housing supply means that even when properties are abandoned, they're quickly snatched up by eager buyers.

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State-by-State Variations

Some states have seen dramatic improvements, while others face new challenges:

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Biggest Improvements:

• Connecticut: -87% (from 100 to 13 zombie properties)
• Iowa: -76% (from 281 to 68)
• North Carolina: -73% (from 195 to 53)

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Areas of Concern:

• Kansas: +126% (from 35 to 79)
• Arizona: +114% (from 28 to 60)
• Florida: +65% (from 1,199 to 1,974)

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Looking Ahead

With record home prices maintaining high equity levels and foreclosure cases dropping, zombie foreclosures are likely to remain a minor concern in most housing markets. This trend continues to reflect the strength of the U.S. housing market as it enters its 13th year of growth.

Data source: ATTOM Q4 2024 Vacant Property and Zombie Foreclosure Report, released October 31, 2024

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Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.