Zombie Foreclosures Edge Up, Steady Vacancy Rate
Out of the frying pan, into the foreclosure fire! It seems the zombies we’re facing today aren’t coming for our brains but our living spaces. ATTOM just released its Vacant Property and Zombie Foreclosure Report, and guess what? Out of 104.9 million residential properties in the U.S., about 1.4 million of them are sitting pretty empty, holding a line at a 1.3% vacancy rate. That's a steady number if you’re comparing apples to last year’s apples.
A Closer Look at the Numbers
Now, don’t get too comfy—those vacancy numbers might be yawn-inducing, but zombie foreclosures are making a little more noise. Out of 245,376 properties in the foreclosure pipeline, 8,312 have gone undead, with nobody left at home to pay those bills. That's a jump to 3.4% from the previous quarter’s 3.3%—not seismic, but enough to keep us on our toes.
And if you're in Georgia, North Carolina, Indiana, Iowa, or South Carolina, you're feeling those zombie chills even more. Georgia leads the charge, doubling its zombie crew by 98%, while others posted hefty double-digit increases. Not to be outdone, two brave states—Washington and New York—managed to kick a few zombies out, seeing declines of 13.1% and 2.2%, respectively.
Regional Breakdown Shows Variances
Vacancy and Zombie Rates: A Contrast
Oklahoma, Kansas, Alabama—these states top the list for high residential vacancy rates, hovering around that 2%-plus mark. Meanwhile, New Hampshire and Vermont over in the Northeast are keeping it tight with the lowest rates.
"The increase in zombie foreclosures across most states may reflect a foreclosure market that is slowly returning to more normalized levels," said Rob Barber, CEO of ATTOM.
Rob knows the lay of the land. Even as zombie foreclosures grow, this eeriness is just one subplot in the grand script of normalizing markets.
- Georgia leads with a 98% rise in zombie homes
- New York fights zombies with a 2.2% decrease
- Investor-owned properties hit a 3.5% vacancy rate
The Institutionally Owned Conundrum
Now here’s where things get juicy for investors—properties under institutional ownership saw vacancy rates more than double than the overall national statistic. With Indiana popping off at 7.1% and New Hampshire barely cracking 1%, it's a curious tale of different market vibes painting the picture.
Key Metros and Potential Impact
In Midwestern citadels like Cedar Rapids and Wichita, zombie rates climbed into double digits—numbers like 13.2% and 12.9% aren’t playing around. Meanwhile, Grand Rapids and Trenton managed to push back the tide with near-zero rates, a comforting sign.
For the sharp-eyed investor watching this dance, understanding where these trends morph from data points into real business stakes is crucial. High vacancy rates can dampen property values, while zombie foreclosure upticks can mean upcoming sales or recourse actions—monitoring these nuances can be as important as watching a shaky ticker.
Overall, ATTOM’s data reinforces a sharp cautionary tale about not just the properties and the percentages, but the broader ripple effect. Housing dynamics, investor involvement, and state-by-state conditions are a puzzle. You either piece them together or risk being caught flat-footed when things shift again.
