ome Vacancy Rates Remain Near Historic Lows: What a 1.3% Vacancy Rate Means for Homebuyers in 2026

If you've been searching for a home and wondering why prices remain relatively high despite a slower housing market, one important piece of the puzzle may surprise you.

There simply aren't that many empty homes across the country.

According to ATTOM's latest Vacant Property and Zombie Foreclosure Report, just 1.3% of residential properties nationwide are vacant. That percentage was unchanged from both the previous quarter and the same period one year earlier.

Even more interesting, 19 states have residential vacancy rates below 1%.

Those numbers help illustrate an important characteristic of today's housing market: while some communities have seen more homes listed for sale and longer selling times, the country's existing housing stock remains heavily occupied.

For prospective homebuyers in New Jersey, Pennsylvania, Delaware and Florida, understanding the difference between vacant homes, housing inventory and actual homes available for purchase can help explain why affordability remains challenging.

It can also help buyers develop a more realistic strategy for finding and financing their next home.

What Is the National Home Vacancy Rate?

The residential vacancy rate measures the percentage of properties identified as vacant within the housing stock covered by a particular report.

ATTOM's Vacant Property and Zombie Foreclosure Report examines property records and other data to identify residential properties classified as vacant, including properties associated with foreclosure activity.

For the latest reporting period, ATTOM found a national residential vacancy rate of approximately 1.3%.

To put that into perspective, that's roughly 13 vacant properties for every 1,000 residential properties covered by the analysis.

But there's an important distinction here.

A vacant property isn't necessarily listed for sale, and a home listed for sale isn't necessarily vacant.

A vacant home might be undergoing renovations, tied up in an estate, owned by an investor, awaiting a tenant or otherwise unavailable for immediate purchase.

Meanwhile, many homes actively listed for sale are still occupied by their owners.

So while vacancy data provides insight into how much housing is sitting unused, it isn't the same thing as measuring the number of homes buyers can actually purchase.

That distinction matters when interpreting housing headlines.

Why Are Low Vacancy Rates Important?

A low residential vacancy rate tells us that relatively few properties are sitting empty.

In a country where housing affordability and limited supply remain major concerns, that can be meaningful.

Housing is subject to the same basic economic relationship between supply and demand as many other goods and services.

When more people want homes than there are suitable properties available, competition can support higher prices.

When buyers have more available options relative to demand, sellers may face greater competition and price growth can moderate.

However, vacancy rates alone don't determine home prices.

Mortgage rates, household income, employment, local inventory, new construction, population trends and other factors also influence what buyers are willing and able to pay.

Still, the fact that so little of the existing housing stock is vacant helps explain why an increase in listings doesn't automatically translate into an oversupply of housing.

The Difference Between Vacancy and Housing Inventory

This is probably the most important concept for buyers to understand.

Three housing statistics are frequently discussed as though they mean the same thing:

Housing vacancy: Properties classified as unoccupied.

Active housing inventory: Homes currently listed for sale.

Housing supply: The broader availability of housing relative to demand, often expressed through measures such as months of supply.

These are related concepts, but they measure different things.

Imagine a community with 10,000 homes.

Perhaps 100 of those homes are vacant.

That doesn't mean 100 homes are available for purchase.

Some may not be for sale at all.

Now imagine that 250 occupied homes are listed for sale.

Those properties contribute to the active inventory even though people still live in them.

This is why buyers should pay attention to local listings and months of supply rather than assuming a national vacancy statistic tells them exactly how many homes are available.

Why Aren't There More Empty Homes?

There are several possible reasons residential vacancy rates can remain low.

1. Existing Homeowners Are Staying Put

Many homeowners purchased or refinanced when mortgage rates were significantly lower than today's rates.

Some of those homeowners are reluctant to sell because moving would require replacing their existing mortgage with a new loan at a higher interest rate.

This is commonly referred to as the mortgage rate lock-in effect.

A homeowner might want a larger house, a smaller house or a different location but decide to remain in the current property because the existing monthly payment is attractive.

When homeowners remain in their properties longer, fewer homes may become available for purchase.

2. Housing Construction Takes Time

Building new housing isn't an overnight process.

Builders must obtain land, financing, permits and approvals. They must also manage construction costs, labor availability and market demand.

Even when a community needs more housing, increasing the supply can take years.

And not every new property is affordable to the typical buyer in that market.

3. Homes Are Still Needed for Everyday Living

A home isn't simply an investment or something bought and sold.

It's where people live.

Families may remain in the same property for decades.

Others may choose to rent out a property rather than sell it.

Some homeowners hold onto properties for retirement, family or long-term financial reasons.

Those decisions affect how frequently homes become available to new buyers.

Why Home Prices Can Stay High Even When Sales Slow Down

This is one of the most confusing aspects of today's housing market.

Buyers see headlines reporting fewer sales, longer listing times or declining pending-home-sale activity.

Naturally, they wonder why home prices haven't fallen dramatically.

The answer is that slower sales don't automatically mean there are too many homes.

Sometimes sales are slow because buyers are struggling with affordability.

Mortgage rates may be higher than buyers want.

Monthly payments may be difficult to manage.

Property taxes and insurance may add substantial costs.

At the same time, sellers may be unwilling or unable to lower prices significantly.

If homeowners have substantial equity, manageable payments and no immediate need to sell, they may choose to wait rather than accept a lower offer.

That can create a market where transaction volume is relatively low but prices remain resilient.

A Low Vacancy Rate Doesn't Mean Every Home Will Sell Quickly

Another important distinction is that low national vacancy doesn't guarantee strong demand for every individual property.

A home can still sit on the market because it's overpriced.

It may need significant repairs.

Its layout might not appeal to buyers.

The location may be less desirable.

Insurance costs or HOA fees may be unusually high.

Or the property may be competing against newer or better-priced homes nearby.

That's why a buyer shouldn't assume there's no room to negotiate simply because the national vacancy rate is low.

Real estate remains highly local.

The specific property and surrounding market conditions matter far more when deciding what to offer.

What Does This Mean for First-Time Homebuyers?

First-time homebuyers face a particular challenge when housing supply is limited.

Unlike someone selling an existing property, a first-time buyer generally doesn't have equity from a previous home to apply toward the next purchase.

That means saving for the down payment and closing costs can be especially important.

When inventory is limited, first-time buyers may also compete with move-up buyers, downsizers and investors.

But that doesn't mean purchasing a home is out of reach.

One of the most common misconceptions I encounter is that buyers need a 20% down payment.

That's not necessarily true.

Depending on eligibility and the property, mortgage options may include conventional financing with relatively low down payments, FHA loans, VA loans for eligible borrowers, and USDA financing for eligible properties and borrowers.

The appropriate program depends on the buyer's qualifications and financial goals.

Understanding those options before shopping can help buyers make more informed decisions.

Why Mortgage Pre-Approval Matters in a Supply-Constrained Market

When a desirable home becomes available in a community with limited inventory, buyers may need to act promptly.

That doesn't mean rushing into a purchase without understanding the property or the financing.

It means doing the financial preparation in advance.

A thorough mortgage pre-approval can help establish a realistic purchase price range and identify potential financing issues before you're under contract.

Depending on the lender and the process, that can involve reviewing income, assets, credit, employment and existing debts.

The goal isn't simply to determine the largest mortgage you might qualify for.

It's to establish a payment range you're comfortable with and understand how much cash you may need to complete the purchase.

That preparation can make the home-shopping experience much more productive.

Your Monthly Payment Matters More Than the Listing Price

Let's say you're considering two homes listed at $450,000.

One has annual property taxes of $7,000.

The other has annual property taxes of $11,000.

The difference is $4,000 per year, or approximately $333 per month, before considering any differences in insurance, financing or other expenses.

That's a meaningful difference despite the identical asking prices.

Now imagine one home also has higher homeowners insurance or an HOA fee.

The actual monthly cost could be substantially different.

That's why buyers should evaluate the complete estimated housing payment, including principal, interest, property taxes, homeowners insurance, mortgage insurance when applicable, and association fees.

This is especially important when affordability is already tight.

What Low Vacancy Means for New Jersey Homebuyers

New Jersey is a good example of why national housing statistics need to be considered alongside local market conditions.

Buyers searching in Williamstown, Washington Township, Sewell, Blackwood, Cherry Hill and other South Jersey communities can encounter different levels of inventory and competition even within a relatively small geographic area.

One neighborhood may have several homes available.

Another may have very few listings.

A desirable home that's properly priced can still attract immediate interest, while a property with an unrealistic asking price may remain available longer.

For South Jersey buyers, property taxes also play a major role in affordability.

Two homes with similar prices in different municipalities can produce noticeably different mortgage payments.

That means comparing towns should involve more than looking at asking prices.

Buyers should also consider taxes, insurance, commuting distance, property condition and the actual availability of suitable homes.

Pennsylvania Buyers Should Look Beyond the Headlines

Pennsylvania housing markets vary considerably.

Conditions in Philadelphia can differ from nearby suburban communities, and both can differ from other parts of the state.

A buyer seeking a single-family home in a desirable suburb may face limited options even if broader regional inventory has improved.

Conversely, another buyer may find a neighborhood where homes are taking longer to sell and sellers are more willing to negotiate.

The most useful questions are local:

How many comparable homes are available?

How long have they been listed?

Have asking prices been reduced?

How many competing offers are sellers receiving?

Are properties closing above or below asking price?

Those answers can help buyers understand their actual negotiating position.

Delaware Buyers May Encounter Different Supply Conditions

Delaware also has distinct housing markets.

Northern Delaware communities may attract buyers who work in Delaware, Pennsylvania, New Jersey or Maryland.

Other parts of the state appeal to retirees, relocating households and buyers interested in coastal living.

Those different sources of demand can influence local housing availability.

A low national vacancy rate doesn't tell a Delaware buyer whether a particular community has plenty of homes for sale.

But it reinforces why identifying the right location, financing and property type early can be valuable.

Florida Buyers Need to Look Closely at Local Conditions

Florida deserves particular attention because housing conditions can vary significantly between metropolitan areas and property types.

Some Florida communities have experienced increases in active listings and longer marketing times.

Other neighborhoods or housing categories may have very different conditions.

Florida buyers also need to look beyond the purchase price.

Homeowners insurance, flood insurance where applicable, property taxes, HOA fees, condominium fees and possible special assessments can materially affect affordability.

A home that looks like an attractive bargain on a real estate website may have ongoing expenses that change the financial picture.

For buyers relocating to Florida or purchasing a second home, getting realistic estimates of those expenses is essential.

What About Vacant Homes in Foreclosure?

ATTOM's report also examines properties in the foreclosure process, including what are sometimes called zombie foreclosures.

A zombie foreclosure generally refers to a residential property that is vacant while the foreclosure process is underway.

These properties can attract attention because buyers sometimes assume they'll be available at significant discounts.

But a property in foreclosure isn't automatically for sale, and a vacant property in foreclosure isn't necessarily available to purchase directly from the lender.

Ownership, legal status, property condition and sale procedures can complicate these transactions.

Some properties may also require substantial repairs or may not meet the condition requirements of certain mortgage programs.

Buyers interested in distressed properties should carefully evaluate both the property and the available financing before proceeding.

Can You Get a Mortgage on a Vacant or Distressed Home?

Potentially, yes.

But the answer depends on the property's condition and the mortgage program.

A vacant home in good condition may qualify for traditional mortgage financing.

A property with major structural problems, missing utilities, safety hazards or other significant deficiencies may require repairs before certain financing can be completed.

Some buyers may need to explore renovation-related financing options, depending on eligibility and the property.

This is why it's important to discuss the financing early if you're considering a home that needs substantial work.

A property being inexpensive doesn't automatically mean it will be easy to finance.

Could New Construction Help Solve the Housing Shortage?

New construction is one of the ways communities can increase the number of available homes.

But construction alone doesn't guarantee affordability.

Land costs, labor expenses, materials, local regulations and financing costs all influence the final price of a newly built home.

Builders also need to respond to buyer demand.

Some markets may benefit from additional single-family construction.

Others may need more townhomes, condominiums or other housing types.

For buyers, new construction can provide another option when existing-home inventory is limited.

However, the financing, taxes, insurance, builder incentives and construction timeline should all be evaluated carefully.

Don't Assume New Construction Is More Expensive

Buyers sometimes automatically eliminate new construction because they assume it will cost more than an existing home.

That may be true in some cases, but not always.

Depending on the market, builders may offer incentives such as eligible closing-cost assistance or mortgage rate buydowns.

A newly constructed property may also have different near-term maintenance needs than an older home.

On the other hand, buyers need to consider additional expenses such as landscaping, window treatments, appliances, upgrades and any applicable HOA fees.

The right comparison is the complete cost of ownership, not simply the advertised base price.

What Happens If Mortgage Rates Decline?

This is where housing supply becomes especially important.

Many potential homebuyers have been waiting for mortgage rates to improve.

Lower mortgage rates can reduce the principal and interest payment on a given loan amount, assuming other loan terms remain the same.

That can improve affordability.

But if rates decline enough to bring a substantial number of sidelined buyers back into the market, demand could increase.

If housing inventory doesn't rise at the same pace, competition could intensify.

That could mean more bidding wars and reduced negotiating leverage in certain markets.

In other words, a lower mortgage rate doesn't automatically mean an easier homebuying market.

Buyers should consider the relationship between mortgage rates, inventory, home prices and competition.

Why Waiting for the Perfect Market Can Be Difficult

It's understandable that buyers want the best possible combination of price and mortgage rate.

But those two factors don't always move in the same direction.

If mortgage rates decline, buyer demand may increase.

If buyer demand increases while inventory remains constrained, home prices may face additional upward pressure.

On the other hand, if inventory rises substantially or demand weakens, buyers may have more negotiating power.

Nobody can predict exactly how those factors will interact in a particular community six months or a year from now.

That's why I encourage buyers to focus on their own financial readiness rather than trying to perfectly time the national housing market.

Seller Concessions May Still Be Available

Even with a low national vacancy rate, individual sellers may be willing to negotiate.

A home that's been listed for several weeks may attract less competition than a brand-new listing.

Depending on the transaction and applicable mortgage guidelines, a seller might agree to contribute toward certain allowable closing costs or a mortgage rate buydown.

For some buyers, those concessions can be particularly valuable.

For example, negotiating seller assistance toward eligible closing costs may reduce the amount of cash needed at settlement.

In other situations, a price reduction might make more sense.

The best approach depends on the loan program, seller's willingness, buyer's financial position and property.

This is another reason it's helpful to work through financing scenarios before submitting an offer.

How to Compete Without Overpaying

Limited inventory can create pressure to act quickly, but buyers still need to make sound financial decisions.

A strong offer isn't necessarily the highest offer.

The seller may also care about financing reliability, closing timeline, contingencies and other transaction terms.

Having a thorough pre-approval, understanding your available cash and communicating with your mortgage professional can help you submit an offer confidently.

But don't let competition push you into a payment you're uncomfortable making.

And don't automatically waive important protections simply because a property is receiving multiple offers.

The goal is to purchase the right home under terms that make financial sense for you.

Should You Buy Now or Wait for More Homes to Become Available?

This is one of the most common questions homebuyers ask.

And the answer depends on your circumstances.

If your income is stable, you have adequate savings, you can comfortably afford the payment and you find a home that meets your needs, buying may make sense.

If you're still building savings, improving your credit, preparing for a job change or uncertain about your future plans, waiting may be the better decision.

A national vacancy rate of 1.3% doesn't determine whether you personally should buy.

It simply provides context for the housing environment you're entering.

Your finances, goals and local market matter much more.

How Mortgage Mike Can Help You Prepare

If you're thinking about buying a home in New Jersey, Pennsylvania, Delaware or Florida, the first step should be understanding your mortgage options and realistic monthly payment.

Before you start seriously shopping, we can review your income, assets, debts and credit to discuss what you may qualify for.

We can compare loan programs and down-payment options.

We can estimate closing costs and evaluate how property taxes and homeowners insurance affect affordability.

Once you identify a particular property, we can review the numbers using that home's information.

That way, you aren't making decisions based solely on the listing price or an online mortgage calculator that may not reflect the complete payment.

And if you're considering a property that needs renovations or a new-construction home, we can discuss financing considerations early in the process.

The Bottom Line: Housing Supply Remains an Important Part of Affordability

ATTOM's latest report shows that only 1.3% of residential properties nationwide are vacant, with 19 states recording vacancy rates below 1%.

That doesn't mean only 1.3% of homes are available for purchase, and it doesn't guarantee home prices will continue rising.

But it does show that relatively little of the existing housing stock is sitting empty.

Combined with local inventory, buyer demand, mortgage rates and affordability, that helps explain why finding the right home can still be challenging.

For buyers, the lesson isn't to panic or rush.

It's to prepare.

Know your financing options. Understand your comfortable monthly payment. Pay attention to local inventory rather than relying solely on national headlines.

And when the right property becomes available, you'll be in a better position to evaluate it and make an informed decision.

Thinking about buying a home in New Jersey, Pennsylvania, Delaware or Florida?

Let's review your mortgage options and run the numbers before you start shopping.

Mortgage Mike – Michael DeSantoCrossCountry MortgageNMLS #1766709Licensed in New Jersey, Pennsylvania, Delaware and Florida