Thousands of 'zombie' homes, abandoned by owners during foreclosure proceedings but not yet repossessed by lenders, are a growing concern across the United States. Analysis from property data firm ATTOM found that 3.3 percent of homes in foreclosure nationwide were considered zombie properties in the third quarter of 2026, totaling 8,482 abandoned residences.
While the national rate has slightly decreased from the previous quarter and the same period in 2025, several Midwestern cities are disproportionately affected. Youngstown, Ohio, leads the list, with 12.1 percent of its foreclosed homes left vacant before the legal process is finalized. This means that roughly one in nine properties in foreclosure in Youngstown has already been deserted by its owner.
Other Midwestern cities with high zombie home rates include Cedar Rapids, Iowa, at 11.6 percent; Fort Wayne, Indiana, at 11.1 percent; and Akron, Ohio, at 10.5 percent. Baltimore, Maryland, also reported a high rate of 11.5 percent.
A zombie property is defined as a home where the owner abandons the property after foreclosure proceedings begin, but the lender has not yet officially taken ownership. This often occurs when homeowners receive a notice of default and mistakenly believe the property is no longer theirs, leading them to move out before the lengthy foreclosure process is complete.
Lenders may also choose not to take possession if the property's value is less than the cost of foreclosure, maintenance, and any associated debts. This situation leaves the homes in a legal gray area, often leading to neglect, overgrown yards, unrepaired damage, and increased risks of vandalism, squatting, and fires.
These abandoned properties can negatively impact surrounding neighborhoods by suppressing property values and contributing to urban blight. The problem is not static; the number of zombie properties increased in 21 states between the second and third quarters of 2026. Kentucky saw the largest percentage increase among states with at least 50 zombie properties, with a 56.8 percent jump.
Conversely, some states experienced significant decreases in zombie home numbers, including Georgia, which saw a 22.8 percent drop, and Texas, with a 17.4 percent decline. Ohio's zombie properties also decreased by 10.8 percent.
Despite the presence of zombie homes, the overall U.S. housing market remains tight, with only 1.3 percent of all residential properties vacant in the third quarter of 2026. ATTOM CEO Rob Barber noted that the scarcity of available homes contributes to elevated prices.
Institutional investors hold a disproportionately large share of vacant properties, with 3.5 percent of properties owned by these entities being vacant, more than double the national average. ZIP codes in St. Petersburg, Florida, and Alamogordo, New Mexico, reported particularly high zombie rates, exceeding 30 percent in some areas.
Experts caution that while zombie properties may appear as bargains, they often come with hidden costs such as unpaid taxes, liens, and extensive repair needs, making them more suitable for experienced investors than first-time homebuyers.