Zombie foreclosures rising: Five states hit hardest by abandoned homes

Zombie foreclosures are making a comeback in 2025 as inflation, rising mortgage rates, and high home prices push more Americans into financial strain.

According to new data from ATTOM, more than 212,000 homes were in some stage of foreclosure during the first quarter of 2025. Of those, 7,094 homes were classified as zombie foreclosures—properties abandoned by owners before the foreclosure process finishes.

What are zombie foreclosures?

Zombie foreclosures occur when homeowners move out during foreclosure proceedings but still legally own the property until the process is complete. Owners remain responsible for taxes, insurance, and maintenance, even though they no longer live in the home.

Nationwide, one in every 14,668 homes is now classified as a zombie foreclosure.

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Five states seeing the largest increases

While zombie foreclosures remain rare overall, five states have seen the biggest year-over-year spikes:

1. Missouri

Missouri reported an 85% surge in zombie properties from the first quarter of 2024 to 2025, rising from 27 to 50 vacant homes. Kansas City’s median home list price currently stands at $249,000, with over 43,300 properties for sale.

2. Michigan

Michigan saw a 51% jump in zombie foreclosures, growing from 55 to 83 vacant homes. In Detroit, the median home price is around $100,000, reflecting affordability challenges in the market.

3. South Carolina

Zombie properties rose by 31% in South Carolina, from 74 to 97. Charleston’s median home list price remains much higher at $645,000, putting additional pressure on buyers and owners.

4. Indiana

Indiana posted a 28% year-over-year increase, with zombie foreclosures climbing from 215 to 276 properties. Indianapolis homes list for a median of about $255,000.

5. Kansas

Kansas rounded out the top five, experiencing a 26% jump from 69 to 87 vacant foreclosures. The median list price in Wichita is approximately $270,000.

Metro areas also impacted

Several major metro areas are grappling with high numbers of zombie foreclosures:

• Miami-Fort Lauderdale-West Palm Beach, FL: 747 vacant properties
• New York-Newark-Jersey City, NY/NJ: 747 vacant properties
• Chicago-Naperville-Elgin, IL: 472 vacant properties
• Tampa-St. Petersburg-Clearwater, FL: 324 vacant properties
• Cleveland-Elyria, OH: 201 vacant properties

Zombie foreclosures remain rare but concerning

Despite regional spikes, zombie foreclosures still account for a small fraction of the U.S. housing market.
“Foreclosure activity continues to trend downward, and home equity remains strong,” said Rob Barber, CEO of ATTOM. “Most neighborhoods are free from the abandoned homes that created major issues during past housing crises.”

Homeowners facing financial stress can often avoid foreclosure altogether by selling their properties in today’s still-strong market. Downsizing or negotiating payment plans can also help prevent homes from falling into zombie status.