Zombie homes, which are properties stuck in the foreclosure process for more than a year, are still rare
Zombie properties — homes stuck in the foreclosure process for more than a year — are still a relatively small and stable part of the housing market, according to a new report from Attom Data Solutions.
At the end of 2022, there were 86,416 zombie properties nationwide, up 0.5% from the previous quarter and down 1.9% year-over-year. That represents just 0.26% of all homes in the country.
Zombie properties are concentrated in a few states, with the highest rates in Illinois (1.41%), New Jersey (0.85%), and Ohio (0.68%).
Zombie homes can have a negative impact on neighborhoods, as they can become eyesores and attract crime. They can also lead to property tax losses for local governments.
The increase in zombie properties in the last quarter may be due to the end of the COVID-19 foreclosure moratorium, which allowed homeowners to pause their mortgage payments if they were experiencing financial hardship due to the pandemic.
However, Attom Data Solutions’ report also found that the number of new zombie properties is decreasing. In 2022, there were 170,611 new zombie properties, down 11.3% from the previous year.
This suggests that the zombie property problem is not getting worse, and may actually be improving slightly.