Vacant Property Rates Up in More than Half of U.S. Markets
ATTOM Data Solutions, Irvine, Calif., said while vacant “zombie” pre-foreclosures fell to a new low, nearly 1.4 million U.S. residential properties were vacant in the third quarter, representing 1.58 percent of all residential properties.
The company’s 2017 U.S. Residential Vacant Property and Zombie Foreclosure Report said vacancies decreased slightly from 1.63 percent a year ago, but vacant property rates increased from a year ago in 81 of the 149 metropolitan statistical areas analyzed in the report (54 percent), including Chicago, New York, St. Louis, Baltimore and Phoenix.
The report said vacant “zombie” pre-foreclosure properties–which have started the foreclosure process but have not yet been repossessed by the foreclosing lender–decreased by 22 percent from a year ago to 14,312 as of the end of the third quarter, 67 percent below the peak of 44,030 in Q3 2013. The number of vacant bank-owned properties decreased 48 percent from a year ago to 24,026 as of the end of the third quarter.
“Zombie foreclosures have dwindled dramatically over the last four years as a supply-starved housing has soaked up even some of the most highly distressed properties,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “There are still pockets of the country with high zombie foreclosure rates, and high vacant property rates in general, primarily in the Rust Belt and parts of the Northeast and Southeast–driven in large part by a high share of non-owner occupied vacant properties in those areas.”
Blomquist noted evidence that the “ultra-tight” inventory environment in some red-hot markets is beginning to ease just a bit, with vacant property rates nudging higher in markets such as San Jose, San Francisco, Los Angeles, Boston and Denver.
States with the highest vacancy rates were Mississippi (3.00 percent); Michigan (2.94 percent); Indiana (2.77 percent); Oklahoma (2.73 percent); and Alabama (2.56 percent). States with the lowest vacancy rates were South Dakota (0.25 percent); Vermont (0.39 percent); New Hampshire (0.42 percent); North Dakota (0.69 percent); and Colorado (0.69 percent).
Among 149 metropolitan statistical areas with at least 100,000 residential properties (1 to 4 units), those with the highest vacancy rates were Flint, Mich. (6.89 percent); Youngstown, Ohio (4.49 percent); Beaumont-Port Arthur, Texas (3.80 percent); Detroit (3.77 percent); and Mobile, Ala. (3.77 percent). San Jose, Calif., saw the lowest vacancy rate (0.23 percent), followed by Fort Collins, Colo. (0.24 percent).
Among 405 counties with at least 50,000 residential properties, those with the highest vacancy rates were Baltimore City, Md. (8.14 percent); Saint Louis City, Mo. (6.97 percent); Beaufort County, S.C. (6.94 percent); Genesee County, Mich. (6.89 percent); and Wayne County, Mich. (6.76 percent). Loudon County, Va., had the lowest vacancy rate (0.09 percent), followed by Douglas County, Colo. (0.10 percent.
States with the most of these vacant “zombie” foreclosures were New York (3,528), New Jersey (2,261), Florida (1,963), Illinois (999) and Ohio (974).
New York-Newark-Jersey City ranked highest among metro areas (3,106); followed by Philadelphia (813), Chicago (665), Miami (571), and Tampa-St. Petersburg, Fla. (477).