Home buyers are still battling high prices and tight inventory. So why are 1 in 10 homes in the U.S. sitting vacant?
According to a new study by Highland Cabinetry, which analyzed data from the U.S. Census Bureau and Realtor.com, more than 16 million properties across the U.S. are sitting empty. That’s roughly 10% of the nation’s housing stock—a stat that deserves a closer look, especially when affordability and low inventory are still dominating headlines.
This disconnect, where vacant properties are rising while buyers still feel shut out, is just one piece of what Highland calls the country’s ongoing “housing paradox.”
Byron Lazine broke down the numbers on yesterday’s Hot Sheet, providing both a big picture & ground-level view to put the data in perspective.
Let’s take a closer look at what the report uncovered.
The Top 10 States (and D.C.) with the Most Vacant Homes
Highland Cabinetry ranked states using a vacancy index based on multiple data points, including:
- Homeownership rates
- Homeowner and rental vacancy rates (and their changes since 2021)
- Average days on market
- Average home price
Here are the 10 states (and D.C.) with the highest overall vacancy scores, starting with the most impacted:
- District of Columbia – Score: 76.84 | Homeownership rate: 40% (lowest of the 10)
- Mississippi – Score: 74.73 | Homeownership rate: 73%
- Colorado – Score: 70.15 | Homeownership rate: 67%
- North Dakota – Score: 68.24 | Homeownership rate: 62%
- New York – Score: 57.93 | Homeownership rate: 54%
- Illinois – Score: 57.80 | Homeownership rate: 67%
- Alabama – Score: 55.62 | Homeownership rate: 74%
- Wyoming – Score: 54.03 | Homeownership rate: 74%
- Arkansas – Score: 52.47 | Homeownership rate: 67%
- Texas – Score: 50.25 | Homeownership rate: 63%
Why These Vacancy Trends Matter for Agents
Vacancy data might not be something your average buyer or seller is tracking. But it should be on your radar.
Here’s why:
1. It tells a deeper story than inventory alone.
You may hear “tight inventory,” but in many markets, thousands of properties are still sitting empty. Some are rentals that can’t find tenants. Others are for sale, lingering on the market longer than expected.
Use this data to educate clients who think “everything is selling instantly” or sellers who are afraid to list.
2. It gives investor clients an edge.
Markets like North Dakota (with a 13.3% rental vacancy rate) or Alabama (11.7%) may indicate opportunities for cash-flow-positive investment properties, if clients know where to look.
Share local vacancy trends to help them identify overlooked neighborhoods.
3. It strengthens your hyperlocal content.
Break down your local version of this report. Compare national trends with your MLS data.
This kind of market knowledge doesn’t just build credibility; it helps clients feel informed and confident working with you.
4. It highlights opportunities for seller leads
Not all vacant property owners are looking to sell. But some of them might be considering it, especially if the property has been vacant for over a year. Unless at least one of those properties is paid off, those owners are paying two mortgages every month the home stays vacant.
You can search for this data manually, or use a tool like PropStream to instantly pull lists of vacant homeowners. Or go deeper by isolating those who have owned these properties for longer than a year and may be more receptive to seller offers. Try it free here.
For those receptive to a listing appointment, don’t underestimate the value of showing up with multiple cash from vetted buyers, all ready to review on the Zoodealio platform.
Even if it only provides a back-up solution, it shows the seller you’ve already provided a viable path to a sale.
(Side note: BAMx members have 24/7 access to their own Zoodealio cash offer dashboard.)
What’s Driving the Spike in Vacancies?
While every state has its own mix of challenges, some common themes emerged:
- Rising home prices: The most vacant areas often had above-average home values. In D.C., for example, home prices average $920,000, the highest in the top 10.
- Shift in rental demand: In states like Wyoming, rental vacancy rates are high (8%) and climbing, even while homeownership remains strong.
- Lingering listings: In markets like New York and Wyoming, homes are spending 68 to 73 days on market—well above fast-moving states like Texas, where listings last just 47 days.
Key Takeaways for Real Estate Agents
You don’t need to become a housing economist to benefit from this data. But understanding where vacant homes are clustering (and why) can help you serve your clients more effectively and stand out in your market.
- Use local vacancy data in your listing presentations, buyer consultations, and investor convos to position yourself as a knowledgeable guide in a confusing market.
- Be transparent with clients. When buyers wonder why prices are still high despite empty homes, explain the mix of seasonal, investor-owned, and long-market listings and what it means for them.
Start by checking your own market’s numbers, and don’t be afraid to share what you find, along with the context you already know for your area. When buyers and sellers understand the full picture, they’re more likely to trust your guidance and come to you with questions.
