Most of the United States is struggling with a housing crisis. As the demand for housing has increased dramatically in recent years, housing has fallen – and partly because of this, house prices have skyrocketed. Interestingly, despite the housing shortage, there are approximately 1.3 million single-family homes sitting vacant in the United States.
There are a variety of reasons and explanations for why homes become vacant during the housing crisis. Some of these buildings are commercial, such as rental units that landlords are struggling to fill or homes that can be sold. Sometimes, houses are simply abandoned, and the owners fail or do not want to sell them.
After three consecutive quarters of decline, the national unemployment rate stands at 1.26% of all households as of Q4 of 2022. However, there are many areas in the US where the unemployment rate is much higher than the national average – American villages. Areas where many buildings are vacant are often no longer in high demand.
To discover 25 American cities, 24/7 Wall St. ATTOM Data Solutions, a location information company. The report calculated the unemployment rate for the fourth quarter of 2022 for each of the 6,515 US zip codes with at least 1,000 households using tax assessor data. ZIP codes located in popular vacation spots, where most of the idle area is seasonal, were not included in our analysis. We ranked here the 25 ZIPs with the highest percentage of vacant homes.
Among the zip codes on this list, the share of vacant homes ranges from 17.4% to 34%. Most of the ZIPs on the list are in the Midwest, located in or around cities that have suffered for years from the recession. These Rust Belt areas have seen their former manufacturing sectors collapse and are now left with limited economic opportunities and affordable housing markets.
Based on five-year estimates from the US Census Bureau’s American Community Survey, all but six of the areas on the list reported a decline in population from 2015 to 2020. In 10 of the ZIP codes, the population dropped by 10% during that time. . (Look at the American cities that are leaving.)
Due to the high number of jobs, low population, and limited employment opportunities, domestic standards in these areas are low. In 23 of the 25 cities on the list, the median home price is less than $100,000, and in 12, the median home price is less than $50,000. In other words, the average home in the world is $229,800, according to five-year estimates from the ACS. (Check out the cities with the most buildings that people shouldn’t live in.)
Click here to view American cities.