Cities Struggle to Counter Post-Foreclosure Abandonment

"Nationwide, the homeowner-vacancy rate, which measures the number of vacant homes for sale, rose to 2.8% in the fourth quarter, the Census Bureau recently reported. That matches a record set in the first quarter of 2007 and is the highest since the government began tracking vacant homes in the 1960s."

"The current vacancy rate could be the highest since the Great Depression, when an exodus of Americans left the Dust Bowl states for the West Coast, says Mark Zandi, chief economist at Moody's Economy.com.. Data 'strongly suggest that vacancies are at their highest level since the 1930s,' he says, adding that the empty homes aren't only depressing property values, 'they are weighing on the collective psyche of communities. ... It's kind of like playing for a losing team. It's debilitating.'"

"High vacancies in Florida, Nevada and California partly reflect overbuilding during the housing boom along with rising foreclosures. Cities in the Midwest have some of the highest vacancies, due not only to foreclosures but also to weak economies and population declines. In Cleveland, for example, the number of vacant homes has reached as many as 12,000, about 10% of the city's total housing stock, according to the treasurer of Cuyahoga County, which includes Cleveland."

"The rising number of unoccupied homes creates myriad problems for city governments. They're spending money cutting overgrown yards, draining swimming pools and securing homes to thwart vandals from ransacking empty houses."

Thanks to Curbed LA