ATTOM Data Solutions’ Q3 2019 Vacant Property and Zombie Foreclosure Report found that only 1.6% of all single-family homes and condominiums, or 1,530,563 units, were vacant in Q3 2019. Additionally, this report found that only 304,000 homes were in the process of foreclosure, or -2.2% less than the same time in 2016.
Vacancy rates were hit hard in formerly industrial cities where job loss and investment opportunities have diminished. Those vacant properties translate into decreased tax revenue, greater maintenance costs, increased safety/crime issues and blight which, of course, lower the value of proximate properties.
But, improvement is happening. In just one year, Detroit, for example, has -27% fewer vacant properties than it had just last year.
Take a look at comparisons of vacant properties and vacancy rates for both residential and investment (invt) properties in Q3 2019:
Vacant Vacancy Vacant InvtProp
Metro Properties Rate Investment Props Vacancy Rate
Flint 9,688 6.4% 8,463 23.4%
Montg AL 4,077 3.9% 3,092 10.2%
Youngstown 7,232 3.7% 4,629 10.2%
Mobile AL 5,521 3.7% 4,645 8.5%
Myrtle Beach 7,750 3.5% 7,200 6.3%
Beaumont 4,285 3.4% 3,261 8.5%
Dayton 8,879 3.2% 6,271 9.2%
Detroit 47,172 3.2% 34,330 10.2%
Peoria IL 4,108 3.1% 2,852 10.2%
Jackson MS 5,583 3.0% 4,123 7.9%
ATTOM’s chief product officer, Todd Teta, said, “The change (in vacant properties) on a nationwide level is largely driven by the fact that the market has stabilized, there’s a little bit more equity and…there are more buyers for homes.”
In terms of zombie vacancies due to foreclosures, foreclosure activity decreased -19% in July 2019, the 13th consecutive m/m decline despite foreclosure starts being up +6% from June 2019. Still, foreclosure activity in July was down -14% compared with one year ago.
Additionally, foreclosure filings in July 2019 were down -19% compared with June 2019 and were down -21% compared with July 2018.
Compare just a few cities hit hard by zombie vacancies due to foreclosure in Q3 2013 and Q3 2019:
Metro Q3 2013 Q3 2019
South Bend IN 19.8% 4.5%
Durham-Chapel Hill 15.1% 1.4%
Knoxville TN 13.5% 1.5%
Roanoke VA 13.5% 0.8%
Pensacola FL 12.3% 3.3%
Buffalo NY 12.2% 6.3%
Memphis TN 11.6% 1.3%
