What’s Driving the Spike in St. Louis Zombie Foreclosures?

Written by David Dodge 

Zombie foreclosures—homes that are abandoned during the foreclosure process—remain a relatively rare issue in the national housing market. According to ATTOM’s latest Q1 2025 report, only one in every 14,700 homes in the U.S. is classified as a zombie foreclosure, a figure that has remained steady from the previous quarter and is showing slight improvement from a year ago. However, while the overall rate of foreclosure activity has been on the decline for five consecutive quarters, the presence of zombie foreclosures persists in certain markets—including Missouri.

The State of Zombie Foreclosures in Missouri and St. Louis

Missouri has seen a notable increase in zombie foreclosures over the past year, rising by 85% from 27 to 50 homes. While this surge may sound alarming, it is important to keep it in perspective. Even with this jump, zombie foreclosures represent a small fraction of the overall housing market. In St. Louis specifically, the zombie foreclosure rate sits at 8.9% among properties currently in foreclosure. This means that while nearly 9 out of every 100 foreclosed homes are sitting vacant, the vast majority remain occupied through the foreclosure process.

By comparison, Peoria, Illinois, has an even higher rate, with 15.5% of foreclosures classified as zombie properties. This suggests that while St. Louis has seen an increase, it is not alone in facing this issue, and its numbers are still below those of some other Midwestern cities.

According to Dennis Norman, an author from MORE, REALTORS® St. Louis News, the recent increase in zombie foreclosures is something to watch, though it remains a minor concern compared to broader market trends.

Why Do Zombie Foreclosures Happen?

Zombie foreclosures occur when homeowners facing financial hardship leave their properties before the foreclosure process is officially completed. This often happens due to misconceptions about foreclosure timelines or fear of legal consequences. Some owners may mistakenly believe they are required to vacate the home as soon as they receive a foreclosure notice, even though the process can take months or even years to finalize. When a home is abandoned prematurely, it can deteriorate, attract crime, and negatively impact surrounding property values.

Another factor contributing to zombie foreclosures is lender inactivity. In some cases, banks or mortgage companies initiate the foreclosure process but fail to follow through, leaving properties in legal limbo. These homes may sit vacant for extended periods, leading to community blight and increased municipal costs for upkeep and code enforcement.

St. Louis Real Estate Market Context

The rise in zombie foreclosures comes at a time when the St. Louis real estate market remains relatively stable despite broader economic uncertainties. As of early 2025, median home prices in St. Louis have continued to show resilience, with moderate year-over-year appreciation. According to data from local real estate sources, the median home price in the St. Louis metro area is around $250,000, with steady demand in both the single-family and rental markets.

However, St. Louis has long had areas where vacant properties and foreclosures are a concern, particularly in parts of North St. Louis. While revitalization efforts are underway, abandoned homes can create challenges for neighborhood stability. City officials and real estate investors alike keep a close watch on foreclosure trends, as they can indicate potential opportunities for redevelopment or signal emerging market risks.

The Bigger Picture: What Homeowners and Investors Should Know

For homeowners, it’s crucial to understand foreclosure laws and timelines to avoid unnecessary property abandonment. Missouri is a non-judicial foreclosure state, meaning the process can move relatively quickly compared to states with court-involved proceedings. Homeowners facing financial hardship should explore alternatives such as loan modifications, short sales, or deed-in-lieu agreements before assuming foreclosure is the only option.

For real estate investors, the rise in zombie foreclosures may present opportunities to acquire distressed properties at a discount. However, due diligence is essential, as vacant homes may come with significant repair needs, tax liens, or legal complications.

Final Thoughts

While the 85% increase in zombie foreclosures in Missouri is a striking statistic, the actual number of affected properties remains small in the grand scheme of the housing market. St. Louis, with its 8.9% zombie foreclosure rate, is experiencing an uptick, but this is not necessarily indicative of a widespread crisis. Instead, it highlights the importance of homeowner education, proactive community efforts, and responsible investment strategies.

As the market continues to evolve, keeping an eye on foreclosure trends and vacant property rates will be key for both homeowners and real estate professionals looking to navigate the shifting landscape.