Buyers absorb distressed properties quickly, keeping zombie property levels stable
The number of US homes in foreclosure rose slightly in the second quarter of 2025, yet the market is showing resilience as vacant "zombie" properties remain scarce and overall vacancy rates hold steady.
ATTOM’s Q2 2025 Vacant Property and Zombie Foreclosure Report revealed that 1,382,480 residential properties across the country, roughly 1.3% of all homes, were vacant during the period. This marks the 13th consecutive quarter with the vacancy rate anchored at around 1.3%.
Among the more than 222,000 homes in the foreclosure process this past quarter, 7,329 (or 3.3%) were zombie properties, meaning they were sitting empty after owners abandoned them during foreclosure. While this share is consistent with Q1 2025, it represents a modest increase from 2.9% in the same quarter last year.
Despite the uptick in foreclosure filings, the low share of zombie homes indicates that repossessed properties are being resold or reoccupied at a relatively brisk pace.
“Thankfully, we're not seeing a lot of homes sitting vacant due to pending foreclosures, which is good for families, neighborhoods, and the market,” said Rob Barber, CEO of ATTOM. “However, foreclosure filings have shown a recent uptick, with April seeing a 14% increase compared to the same month last year.
“So far, buyers seem to be scooping up these repossessed homes relatively quickly, so they aren't sitting empty.”
ATTOM’s foreclosure data shows 222,358 properties in foreclosure in Q2 2025, reflecting a 4.8% increase from the previous quarter. This reverses a downward trend that lasted five consecutive quarters. Still, the figure is 6.3% lower than a year ago.
Zombie properties are closely watched because they can contribute to neighborhood blight and depress property values. With just one in every 14,207 homes categorized as a zombie property in Q2 2025, the data signals a relatively healthy housing market, especially in contrast to conditions during the 2008 housing crash.
Meanwhile, mortgage delinquency rates remain historically low. According to real estate data firm Cotality, 2.8% of mortgages were in some stage of delinquency as of March 2025, showing no change from the same time in 2024.
“Mortgage delinquency rates held steady at a low level in the first quarter of 2025,” said Molly Boesel, senior principal economist at Cotality. “Roughly 40% of metropolitan areas showed increases in the overall delinquency rate, comparable to the share from the fourth quarter of 2024.”
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Boesel noted that delinquency rate increases were concentrated in areas hit by natural disasters in 2024.
“Delinquency rates typically stay elevated in areas with natural disasters for about nine to 12 months,” she said. “We can expect mortgage delinquency rates to stay low in 2025 and follow movements in the job market.”
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