Analysis of Zombie Foreclosure Rates in the U.S.

The phenomenon of "zombie" foreclosures—properties abandoned by homeowners during the foreclosure process—has seen a slight decline in the United States, according to a report by the real estate analytics firm ATTOM. In the first quarter of 2026, 3.3 percent of the 230,401 properties in foreclosure were classified as zombie homes, a figure that remains historically low and consistent with the previous quarter. Despite this overall decline, certain states have experienced significant increases in zombie properties.

Newsweek

Maryland reported the largest quarterly increase in zombie foreclosures at 46 percent, followed by South Carolina (34 percent), Oklahoma (26 percent), California (15 percent), and Nevada (12 percent). Conversely, Georgia saw the most substantial decrease, with a 31 percent drop, followed by North Carolina (26 percent), Kansas (24 percent), Texas (14 percent), and Iowa (13 percent).

Newsweek

South Dakota emerged as the state with the highest percentage of zombie properties, with 18 percent of residential properties abandoned before the completion of foreclosure proceedings. This rate is over five times the national average. The high incidence in South Dakota has been attributed to economic pressures in rural areas, where declining home values and weak equity positions lead homeowners to abandon their properties. Following South Dakota, Kansas and Iowa reported zombie foreclosure rates of 10.6 percent and 7 percent, respectively. Other states with notable rates include Missouri (6.9 percent), Oregon (6.7 percent), New Mexico (6.5 percent), Indiana (6.3 percent), Ohio (6.2 percent), and Oklahoma (6 percent).

Newsweek

In contrast, several states reported zero zombie foreclosure rates, including West Virginia, Vermont, and New Hampshire. Other states with low rates include Rhode Island (0.8 percent), New Jersey (0.9 percent), Connecticut (1.3 percent), Massachusetts (1.7 percent), and Utah (1.7 percent).

Newsweek

Rob Barber, CEO of ATTOM, noted that low vacancy rates are a contributing factor to the continued rise in home prices, despite challenges in affordability. He stated, “It will come as no surprise to anyone shopping for a home that vacancy rates remain low. That is one reason home prices have continued to rise despite ongoing affordability challenges.”

Newsweek

Experts predict that the challenges faced by the housing market in 2025, such as sluggish demand and inventory issues, will persist into 2026. The ongoing imbalance between sellers and buyers is expected to create a challenging environment for prospective homeowners.

Newsweek

While ATTOM's report indicates a decline in zombie foreclosures overall, the significant increases in specific states raise questions about regional disparities in the housing market. Further investigation may be needed to understand the underlying causes of these trends and their implications for local economies.

Newsweek