A new report on the percentage of "zombie homes" in the U.S. reveals a housing market that is relatively healthy in many parts of the country, but that still faces challenges in others, especially parts of the Midwest.
"Zombie homes" are defined as properties that owners have abandoned before the end of the foreclosure process. Nationwide, 3.27% of the 230,401 residential properties undergoing foreclosure in the first quarter were considered zombies, according to a first-quarter 2026 report from ATTOM.
That level is essentially unchanged from the prior quarter, but slightly lower than the 3.34% recorded in 1Q 2025. However, in some parts of the country, led by the Midwest, the level was far higher. The highest zombie rates were found in Cleveland (9.9%), Baltimore (9.3%), St. Louis (8.6), Akron (7.4) and Indianapolis (6.5%).
Certain zip codes were especially prone to high zombie rates, exceeding 40% of pre-foreclosure homes. The highest numbers were in Baltimore's 21217, Cleveland's 44108, St. Petersburg, FL's 33708, in New Port Richey, FL and 92262 in Palm Springs.
The number of zombie properties fell quarter-over-quarter in 28 states and the District of Columbia, ATTOM's report on 1Q 2026 revealed. The biggest drops were in Georgia, North Carolina, Kansas, Texas and Iowa. However, increases occurred in states like Maryland, South Carolina, Oklahoma, California and Nevada.
The lowest zombie foreclosure rates were in New York (1.6%), Philadelphia (1,7%), Los Angeles (2.2%), Orlando (2.2%) and Lakeland, FL (2.4%).
Homes owned by institutional investors were more likely to be vacant than those owned by individuals.
"Of the roughly 25.2 million institutional investor-owned homes, about 3.5% were vacant," the report noted. The states worst affected by this trend were Indiana, Illinois, Alabama, Kansas and Oklahoma.
Often neglected and potentially harmful to neighborhood property values, zombie homes are considered indicators of distress in the housing market and broader economy. Their existence can affect the property values and upkeep of neighboring properties. Nevertheless, Rob Barber, ATTOM's CEO, maintained a positive perspective, noting the occupancy remains strong in the housing sector.
"It is encouraging for both neighborhoods and the broader market that even among properties in foreclosure, vacancy rates remain relatively low," he commented.
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