U.S. Vacancy and Zombie Home Rates Remain Low, Signaling Tight Housing Market

Event summary

  • 1.33% of U.S. residential properties were vacant in Q1 2026, unchanged from previous quarters.
  • 3.27% of properties in foreclosure were 'zombie' homes, down slightly from 3.34% a year ago.
  • 28 states and D.C. saw a quarter-over-quarter decrease in zombie properties.
  • Institutional investor-owned homes had a vacancy rate of 3.5%, higher than the overall rate.
  • Highest zombie foreclosure rates were in Cleveland (9.9%), Baltimore (9.3%), and St. Louis (8.6%).

The big picture

The steady vacancy and zombie home rates reflect a tight housing market, contributing to rising home prices despite affordability issues. The data suggests resilience in neighborhood stability even amid foreclosure processes. Institutional investors' higher vacancy rates indicate a strategic shift in property management that could influence market dynamics.

What we're watching

Market Dynamics
How sustained low vacancy rates will affect home prices amid affordability challenges.
Investor Impact
Whether institutional investors will continue to hold higher vacancy rates and its implications for the market.
Regional Trends
The pace at which zombie home rates will decline in high-incidence metro areas like Cleveland and Baltimore.