The number of zombie homes – vacant properties abandoned by owners during the foreclosure process – rose in 30 U.S. states and the District of Columbia in the second quarter of this year from the previous quarter, real estate data analytics company ATTOM said in a May 29 statement.
Zombie homes, which can fall into disrepair and negatively impact the value of other properties in the neighborhood, are a sign of distress in the housing market and the broader economy.
As Naveen Athrappully reports for The Epoch Times, among states with at least 50 zombie homes, North Carolina saw the largest percentage increase in these properties year-over-year, with their numbers rising by 52.5 percent during this period.
This was followed by Iowa and Texas, both seeing an over 50 percent jump in zombie properties. South Carolina and Kansas were the next on the list.
According to ATTOM’s analysis, Peoria County in Illinois ranked at the top in the list of U.S. counties with the highest zombie foreclosure rates.
Broome County in New York came in second, followed by Cuyahoga County in Ohio, Baltimore City County in Maryland, and Indiana’s Marion County.
On a positive note, things looked better from a nationwide perspective, with only one out of every 14,207 being zombie properties in Q2, which ATTOM said was a low rate, indicating the strength of the post-pandemic U.S. housing market.
“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 percent 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,” he added. “Nobody wants to see a return to the days of the 2008 housing crisis when vacant, blighted homes were common in many parts of the country.”
Meanwhile, the number of property foreclosures had risen by 11 percent in the first quarter of this year from the previous quarter, breaking away from the trend of three consecutive quarterly declines, ATTOM said in an April 11 statement.
“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges,” Barber said.
“However, strong home equity positions in many markets continue to help buffer against a more significant spike in distress.”
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