As we look at the "Vacantvilles"- those communities at the far reaches of the metro areas- where foreclosures and walk-aways number more than sales, it’s hard not to wonder, "What will become of all these empty homes if buyers don’t show?" Perhaps it’s possible to see their future by looking at Youngstown, OH:
YOUNGSTOWN, Ohio (CNNMoney.com) — Youngstown, Ohio, has seen its population shrink by more than half over the past 40 years, leaving behind huge swaths of empty homes, streets and neighborhoods.
Now, in a radical move, the city – which has suffered since the steel industry left town and jobs dried up – is bulldozing abandoned buildings, tearing up blighted streets and converting entire blocks into open green spaces. More than 1,000 structures have been demolished so far.
Under the initiative, dubbed Plan 2010, city officials are also monitoring thinly-populated blocks. When only one or two occupied homes remain, the city offers incentives – up to $50,000 in grants – for those home owners to move, so that the entire area can be razed. The city will save by cutting back on services like garbage pick-ups and street lighting in deserted areas.
It’s not a program without its problems, but other cities are looking at Youngstown’s decision to "embrace downsizing".
Youngstown is demolishing older neighborhoods- it’s hard to look at spanking new communities with their greenbelts and community centers and picture them being bulldozed. High gas prices and low demand however, are blighting some of these communities as surely as lost jobs have hurt inner cities in the midwest. In many instances, abandoned homes are becoming targets for crime and vandalism. As in Youngstown, cities have to provide services to under-occupied areas.
Demolition may sound harsh- but what else should be done with too many houses and not enough people?
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Philadelphia did this years ago. It is wise to do if you have an older housing stock that will require renovation. To do it to new houses is criminal, but then again who is going to police these places? But then again if prices are reduced enough people looking for more affordable housing might just be lured from elsewhere in the US.
The problem in Yongstown et al is not the price of homes, its the lack of jobs. Housing is dirt cheap by most Northeast standards. Check out Realtor.com for the area and you can get a pretty decent house for a few $$. Of course you may only get a job paying $8 an hour too which is why so many have moved away.
Tobby,
You are correct, No jobs to speak of. PHX at least has a nicer climate for 10 months of the year. Those long winters in OH are not very pleasant.
The trouble I see in Phoenix is that there is plenty of housing closer in- and the prices are falling in closer areas as well.
Not only are gas prices high, but the commute from Pinal County into Phoenix is awful. There are communities that at the rate they are going won’t reach buildout in 20 years.
Quick, find someone who will sell you an abandoned house in one of those neighborhoods for $1000 and then go to the city for the grant money…
I’m sure the homebuilders and other REIC clowns are all in favor of this plan. Get that inventory down, we don’t want prices falling any further – blow ‘em up if you have to!
Metro,
You are right, that is why this area has been a retirement community. When prices went sky-high, this retirement area was not an option.
I drive a taxi in Scottsdale, and today I was in Paradise Valley a few times. I noticed many for sale signs. Seems like there were 2-3 on every block. I guess the mansions aren’t selling any better than the McMansions.