Crunch Leaves Thousands of Homes Half-Built or Abandoned

Thousands of homes in development are being halted and thousands more vacant new homes are being foreclosed across California, leading to crime, looting and squatting.
March 5, 2009, 8am PST | Nate Berg
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"It's a scene not uncommon throughout California, as residential construction grinds to a halt under the dual weight of the credit crunch and the housing crisis: a rusty chain the only barrier between the community and a half-built structure in Hollywood; a bare dirt lot in Pasadena; old stoves amid the trash at the site in Oakland."

"Nearly 250 residential developments with a combined total of 9,389 houses and condominiums have been halted in California, according to research firm Hanley Wood Market Intelligence. The units, worth close to $3.5 billion, were in various stages of development."

"Now, many are in bankruptcy or have been foreclosed by lenders. Developers have halted sales on an additional 370 new-home developments -- about 30,000 units worth $11.9 billion."

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Published on Wednesday, March 4, 2009 in Los Angeles Times
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