The well documented housing crash
in the US has left the country with an ââ¬Ëextraordinaryââ¬â¢ level of vacant
properties, according to a top central banker. Federal Reserve Board Governor
Elizabeth Duke has called for government aid to deal with empty homes which,
according to Reuters, ââ¬Ëinflict heavy costs on the wider communityââ¬â¢.
Keep reading to learn more about
the vacant property problems in the US.
1.6 million vacant homes for sale in 2012
Federal Reserve Board Governor
Elizabeth Duke said: “In order to see the robust economic recovery we all
want, we need to deal effectively with the large volume of vacant and
distressed properties throughout the country.”
In prepared remarks to a New York
conference on the distressed US property market, Duke noted that despite some
vacant homes selling as the property market has picked up, the number of
abandoned homes remains stubbornly high.
Census Bureau data shows that
vacant homes for sale fell to 1.6 million in the second quarter of 2012,
against a 2 million peak in 2010. However, Duke pointed out there were still
two and a half times as many vacant homes that are not for sale.
“Some neighbourhoods likely
will not recover without the assistance of government, and in this time of
scarce resources, it is critical that the public sector has the information and
tools necessary to ensure that any assistance that is provided is
effective,” Duke said.
In her speech, Duke identified
three broad categories that described most concentrations of abandoned US
homes: post-housing boom neighbourhoods, poorer inner city districts, and
less-obvious suburban communities in prolonged decline.
She added: “Doubtless there
will be costs associated with solving these problems, but it is important to
also consider the costs of doing nothing,” citing lost tax-revenue and the
cost of demolition. “Ultimately, a policy of neglect will be just as – or
even more – costly than finding and implementing constructive solutions to the
vacancy issue.”
