RealtyTrac released its Q2 2016 U.S. Residential Property Vacancy and Zombie Foreclosure Report, which shows nearly 1.4 million U.S. residential properties (1 to 4 units), representing 1.6 percent of all residential properties, were vacant as of May 2016. That is up 2.7 percent from the previous quarter.
The report also shows that 19,187 U.S. residential properties actively in the foreclosure process were vacant (zombie foreclosures), representing 4.7 percent of all residential properties in foreclosure — down 3.1 percent from the previous month and down 30.1 percent from a year ago.
The analysis used RealtyTrac’s publicly recorded real estate data — including foreclosure status, and owner-occupancy status — matched against monthly updated vacancy data from the U.S. Postal Service.
“Lenders have been taking advantage of the strong seller’s market to dispose of lingering foreclosure inventory over the past year, evidenced by 12 consecutive months of increasing bank repossessions ending in February and now evidenced by these numbers showing a sharp drop in vacant zombie foreclosures compared to a year ago,” RealtyTrac Senior Vice President Daren Blomquist said in a news release. “As these zombie foreclosures hit the market for sale they are providing a modicum of relief for the pressure cooker of escalating prices and deteriorating affordability that have defined the U.S. housing market in recent years.”
States with the most zombie foreclosures were New Jersey (4,003), New York (3,352), Florida (2,467), Illinois (1,074) and Ohio (1,064).
Among states with at least 100 zombie foreclosures, those with the highest zombie foreclosure rate were Oregon (11.8 percent), Indiana (9.5 percent), Kentucky (8 percent), Maryland (7.2 percent) and Washington (6.6 percent).
Among metropolitan statistical areas with at least 100,000 residential properties, those with the most zombie foreclosures were New York (3,526), Philadelphia (1,744), Chicago (857), Miami (651) and Tampa (627).
Metro areas with at least 100 zombie foreclosures that posted the highest zombie foreclosure rate were St. Louis (10.6 percent); Indianapolis (10.2 percent); Albany, N.Y. (9.8 percent); Baltimore (9.7 percent) and Portland, Ore. (9.7 percent).
REOs down 5 percent
A total of 43,602 U.S. bank-owned (REO) residential properties were vacant as of May 2016, representing 15.9 percent of all REO residential properties — down 5 percent from the previous quarter.
States with the highest percentage of REO properties that were vacant were Oregon (29.8 percent), Indiana (29.7 percent), Delaware (28.3 percent), Michigan (27.0 percent) and Ohio (25.0 percent).
Among metropolitan statistical areas with at least 100,000 residential properties, those with the most vacant REOs were Detroit (3,982), Chicago (1,967), Miami (1,765), Atlanta (1,470) and Baltimore (1,434).
Metro areas with the highest REO vacancy rates were Flint, Mich. (44.7 percent); Akron, Ohio (37.6 percent); Cleveland (33.8 percent); Peoria, Ill. (33.2 percent); and Fort Wayne, Ind. (33.1 percent).
States with the highest vacancy rate overall were Michigan (3.4 percent), Indiana (3.1 percent), Mississippi (2.8 percent), Alabama (2.6 percent) and Oklahoma (2.6 percent).
Among 146 metropolitan statistical areas with at least 100,000 residential properties, those with the highest vacancy rates were Flint, Mich. (7.2 percent); Youngstown, Ohio (4.7 percent); Detroit (4.4 percent); Beaumont-Port Arthur, Texas (3.9 percent); and Mobile, Ala. (3.7 percent).