The number of "zombie foreclosures"—properties left vacant by homeowners before the foreclosure process is finalized—is declining nationwide, according to recent data. However, thousands of these abandoned homes continue to present challenges for communities across the United States.
Real estate data firm ATTOM reported that zombie foreclosures now represent approximately 3% of all homes in the foreclosure process nationally, a decrease from 3.3% a year prior. Despite this overall decline, the problem persists, with an estimated 8,040 properties nationwide remaining in this state of limbo. Furthermore, 29 states experienced an increase in their zombie foreclosure counts during the last quarter.
This situation highlights a persistent contradiction in the U.S. housing market: while demand is high and inventory is limited, numerous residential properties sit empty and entangled in foreclosure proceedings. These neglected properties often become eyesores, characterized by boarded-up windows, overgrown lawns, and general deterioration, negatively affecting surrounding neighborhoods.
Several states have seen their zombie foreclosure numbers rise. Youngstown, Ohio, a city historically reliant on steel manufacturing, faces a particularly acute problem, with 13% of its foreclosed properties classified as zombies—more than four times the national average. The city has struggled to reintegrate these abandoned properties into its housing stock.
Wisconsin recorded the largest percentage increase in zombie properties on a quarterly basis, with a 20.9% rise to 52 homes. Maryland followed with a 19.2% increase, reaching 180 properties, while Pennsylvania saw a 17.2% rise to 252 homes. Texas also experienced a significant increase of 15.7%, bringing its total to 192.
Conversely, some states have seen notable decreases. Arizona reported the steepest quarterly decline, with zombie properties dropping by 34.9% to 56. Florida, despite having 2,220 zombie properties, saw its count decrease by 19.6%, and California registered a 10.4% reduction, with 267 such properties.
In total, ATTOM identified 269,195 residential properties in the foreclosure process during the fourth quarter, including the 8,040 classified as zombie foreclosures. Concurrently, the national residential vacancy rate slightly decreased to 1.2%, down from 1.3% in the preceding quarter and the same period last year.
The ongoing housing shortage in the U.S. further complicates the issue. Millions of homes nationwide are vacant, though many are temporarily unoccupied, used as vacation homes, or simply not listed for sale. The nation's housing supply gap widened to 4.03 million homes in 2025, as new construction has lagged behind household demand. This imbalance has made homeownership increasingly challenging, particularly for first-time buyers facing high prices and interest rates.
Acquiring an abandoned property, while potentially appearing to be a bargain, can involve significant complexities beyond the cost of repairs. Potential buyers may face unresolved ownership issues, outstanding taxes, insurance complications, and lengthy legal foreclosure processes.