US Home Vacancy Remains Stagnant as Inventory Bottleneck Persists

Across the country’s 104.6 million residential properties, 259,666 homes currently sit in the foreclosure process. Of those, 8,482 are categorized as zombie properties—homes abandoned by owners before legal proceedings conclude. Despite this slight dip in abandonment, Rob Barber, CEO of ATTOM, noted that the vacancy rate remains below 1 percent in 19 states. This supply scarcity acts as a significant bottleneck, maintaining upward pressure on home prices.

Regional disparities remain stark. The Midwest continues to lead in zombie property concentrations, with metropolitan areas like Youngstown, Ohio, and Cedar Rapids, Iowa, reporting rates exceeding 11 percent. Conversely, institutional investors are holding a disproportionate share of empty stock; their vacancy rate hit 3.5 percent, more than double the national average. As investors maintain high levels of unoccupied assets in states like Indiana and Illinois, the broader market continues to struggle with limited inventory, leaving little relief for those seeking to enter the housing market.