Low Vacancy Underpins Steady Home‑Improvement Demand for Lowe's Cos.

Low vacancy underpins steady home‑improvement demand for Lowe’s

Lowe’s Cos. is benefiting from persistently low residential vacancy rates that underpin sustained home‑improvement and repair spending, according to a new ATTOM report. With just 1.33 percent of U.S. residential properties vacant at the start of the year, homeowners and landlords are more likely to invest in maintenance, remodeling and energy‑efficiency upgrades rather than abandon or sell properties, supporting demand for Lowe’s stores and its professional contractor channels. The small pool of distressed and “zombie” foreclosures limits the risk of a sudden influx of cheap, repair‑required properties that could otherwise depress renovation volumes.

The steady vacancy backdrop also shapes Lowe’s operational priorities. Stable occupancy supports predictable sales of higher‑margin renovation categories such as kitchens, bathrooms, flooring and HVAC, and reinforces the company’s push to expand services and installation offerings for both DIY customers and trades. At the same time, regionally concentrated pockets of higher vacancy or rising zombie counts prompt adjustments to store assortments and local contractor engagement: markets with older housing stocks tend to show stronger demand for repair and retrofit products than markets driven by new construction.

For Lowe’s supply‑chain and inventory planning, the report’s findings reduce near‑term downside risk from a wave of distressed home resales. Because foreclosures and zombie properties remain a small share of the housing stock, the company faces less pressure from rapid cuts in replacement‑cycle spending linked to widespread owner displacement. Lowe’s urban and suburban store network therefore continues to prioritize professional customer services and seasonal merchandising aligned with steady homeowner investment.

Regional ripple effects on store performance

ATTOM finds variation across states that is likely to affect Lowe’s store clusters differently. Oklahoma and Kansas post the highest state vacancy rates at 2.4 percent, while New England and some coastal states show the lowest. Among states with at least 50 zombie properties, Maryland, South Carolina and California register the largest quarter‑over‑quarter increases, while Georgia, North Carolina and Texas post notable declines — patterns that can influence local demand for repair versus replacement goods.

ATTOM’s headline figures and market context

ATTOM reports roughly 1.4 million vacant homes out of about 104.8 million residential properties, with 230,401 properties in foreclosure and 7,540 classified as zombies (3.27 percent of foreclosures). ATTOM’s CEO Rob Barber says low vacancy is helping underpin rising home prices and that the relatively low vacancy among foreclosures is encouraging for neighborhoods and investors.