U.S. Home Vacancy Rate Stagnates at 1.3%, Zombie Homes Dip Slightly
Event summary
- U.S. residential vacancy rate remained steady at 1.3% in Q3 2026, unchanged from Q2 2026 and Q3 2025.
- Zombie foreclosure rate (abandoned properties in foreclosure) fell slightly to 3.3% from 3.4% in previous periods.
- 19 states reported vacancy rates below 1%, exacerbating housing supply constraints.
- Investor-owned properties had a vacancy rate of 3.5%, more than double the national average.
The big picture
The stagnant vacancy rate underscores persistent housing supply challenges, with low inventory likely to sustain upward pressure on prices. The slight reduction in zombie homes suggests modest improvements in foreclosure processing, though regional disparities remain pronounced. Investor-held vacant properties, at more than double the national average, highlight strategic holding patterns that could influence future market liquidity.
What we're watching
- Housing Supply Dynamics
- How prolonged low vacancy rates will affect home prices and affordability in tight markets.
- Foreclosure Trends
- Whether the slight decline in zombie homes signals improving foreclosure resolution processes.
- Investor Activity
- The pace at which institutional investors will maintain or adjust their vacant property holdings.