There Are 19 Million Vacant Homes In The US
19 million homes are currently vacant and for sale, either through foreclosure or bank seizure or just because no one feels like living there — and 19 million is a record.
From Bloomberg:
The share of empty homes that are for sale rose to 2.9 percent, the most in data that goes back to 1956. The homeownership rate fell to 67.5 percent, matching the rate in the first quarter of 2001.
The worst U.S. housing slump since the Great Depression is deepening as foreclosures drain value from neighboring homes and make it more likely owners will walk away from properties worth less than their mortgages.
Vacant homes are bad news for neighborhoods — boarded up windows and a glut of available properties on the market bring down home values fast. Unfortunately, there's just no quick solution to the problem.
Record 19 Million U.S. Homes Stood Vacant in 2008 [Bloomberg]
(Photo:The Joy Of The Mundane)
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Vacant.
Maybe these are all the households not ready for the DTV switch?
(sorry, low but there's just not much to say about this other than wow)
I'm sure the number of vacant homes will lead someone in the government to surmise that we need more money to fight crack addiction.
Vacant homes are the gateway situation.
Wouldn't you say there's also a record number of people living in this country? The percentage means far more.
It's because they don't have granite countertops or stainless steel appliances. If someone would just add those it would be like a 600% return on investment.
Not to mention a glut of "E's" and a paucity of "A's" in world vowel market
@karlrove: The share of empty homes that are for sale rose to 2.9 percent, the most in data that goes back to 1956.
Scary thing is, about 18.5 million of them are in Detroit.
Meanwhile, I'm pacing back and forth waiting to see if the seller accepts our offer.
@bastion72: Is there any typo worse than one in a headline? I think the only other kind of typographical error that looks awful is when it's in all capital letters.
the sick thing is that they are still building more and more condo, townhouse and planned community houses in my area. I know they started those projects years ago, but I'm shocked they didn't see this coming. when they increase the supply so fast they couldn't possibly have seen a good return even if the housing market stayed ok.
@snowburnt: The Empire State Building was started before the October 1929 stock market crash, and was completed in 1933. It was nicknamed the Empty State Building until after WW II.
surely a joke, wouldn't ya think, Irish Lion?
Certainly not disputable that there is a glut of homes for sale in Detroit. I just saw a 4 bedroom, 3 bath, brick home for sale for only $10K. Move in condition. If you dare...
@cynical_bastard: Hilarious, your "E bailout" has made you sound like a Russian!
Is this where the bailouts are taking us? Is America becoming Russia?...dum dum DUM!
We have a vacant house in our neighborhood. It has been that was for over a year. The former owner showed up twice last summer to mow after the city made threats at fines yet the house has not been put on the market yet.
It really sucks to live in a nice neighborhood with a house that is slowly dying.
If economics were not a factor, could this means 19 million homes available for homeless people?
@edebaby: I would so dare, if it wasn't in Detroit. I guess that's the point. You don't see deals like that on every street here in Houston. I bet you do see some, though, so maybe it's house-hunting time.
The folks who make living without a mortgage a spectator sport frequently purchase homes for near-nothing (like a hundred dollars, seriously) from exasperated people disgusted with their useless chattels, and move them to a lot they already own. It's safe (as houses, yuk yuk) and only costs the price of the move and the contractor to pin it down and hook up the utilities. If you're really good at the game, you pitch yourself to the homeowner as a removal service and get them to pay you for taking the house away.
And how many vacant houses are there?
@HurtsSoGood: So true. There were lots of brand-spanking-new buildings here in Houston that the oil bust in the 80s mothballed. They just finished recommissioning the last of them a few years ago, I think.
@MisterE: If so, I would totally try to get evicted from my apt so I could be homeless and get a free house. But that's not how it works, now is it?
quick, remodel your bathrooms. It's the only way!
@snidelywhiplash: my dad lives an hour south of detroit and is trying to sell his home. he paid $190k for it 10 years ago and is now trying to get someone to take it for $175k. it's a full-on disaster area up there.
@catnapped: One of my relatives has a bungalow in a presentable but unfashionable neighborhood in North Hollywood, and is pressuring his heirs to decide what to do with the thing when he dies. My brother immediately yelled, "FLIP THAT HOUSE!" I didn't get it for a minute...
It would be terrific if Consumerist could do an article on how to cost-effectively and attractively fix up a "well-loved" house that needs a lot of attention to make it saleable.
@Ash78: Yeah, we should outlaw vacant homes -- did you know that 57% of all drug users went inside a vacant home at one point in their life?
This is obviously unacceptable and needs to be shut down immediately.
This shows what a sham home prices are- in a true capitalist system, price would fall to meet demand. The banks are artificially (and have been for years) inflating home prices (complicit: real estate agents, who get higher commissions, and cities/counties, who get more property tax) far beyond what the market will take.
Assuming half of these homes are decent, non-crack-den caliber, its likely they WOULD sell, if the bank would actually take a reasonable price-- but, if you own dozens of these mortgages in a particular city and actually start letting them go, you lower home prices across the board.
Don't you get the feeling that SOMEONE should go to jail?
@alysbrangwin: It's actually pronounced "vay-sent" and it's from the French adjective meaning "keflempt".
Ooo look, a typo. Quick, post it to consumerist!
@HRHKingFridayXX: LMAO - So true. Many sellers are still asking too much for too little. In the greater NYC area, people are trying to sell homes that have not one upgrade for the same price as their neighbors who have upgraded their homes to the hilt! That's freaking criminal! I guess I will remain in my apartment for a bit longer.
@Tightlines: Why is only a tiny percentage of them for sale? What are all those empty homes doing if they're not for sale?
@catnapped: They or one of their competitors are now doing a "fix that space to rent it out" show which I guess means that people are trying to get rental property out of their homes in order to help pay for their mortgages...
@JGKojak: Thank you! This is how I have felt for the past year that I have been looking at homes. Many of the homes in my price range (Max $335k) are overpriced for the space, neighborhood and condition. If they were priced more reasonably, I may have brought one already.
And yes, I understand that people are selling homes that they are losing money on. Maybe we should have received a bailout rather than the greedy banks!
@Ash78: No kidding. Consumer Reports had an article on the average cost and return over time for different improvements. I don't believe any were close to 100%. Yet somehow that "What's My House Worth?" show says any improvement will return 100-300%.
@Rhayader: I read that minorities are now grinding up foreclosed homes and shooting them into their genitals.
Watch out next time you see someone with a cheese grater and a wandering look in their eye.
I have heard that rent prices are now going down as people scamble to keep homes afloat knowing that they cannot sell for what they paid...
Non, non, non! Vacent refers to the hot new style sweeping the nation...who doesn't board up their windows these days? It's recession chic, mon ami.
I think we should subsidize arsonists... that will bring inventory down.
I am so so so very glad we sold our house in Arizona in Feb 2008. I bent over backwards to make the deal work and people told me I was crazy to do so much for our buyer when "the market is poised to swing back up any day now and there will be another buyer if this deal falls through."
Yeah, right. The house I sold is now worth 15k less than what I sold it for. We actually made good money on that sale even with all the concessions we made. I feel really bad for the people in our old neighborhood but damn, we timed it just right. I really feel like we dodged a bullet.
We moved and we're renting for now since we know we're not going to be here more than four years. When we get ready to move back to AZ, we'll be able to buy a bigger house for what we paid there back in 2003.
19 million vacant houses. How many of them are over 2500 square feet?
And what percentage of owned homes, not in foreclosure while still on a mortgage, are under 2500 square feet?
The market is saturated with oversized and overvalued junk that people can't afford, and people wonder why they're not selling or payments are being made on them.
@nytmare:
Alot of homes in foreclosure are not for sale and sitting vacant while they wait to go to auction.
Don't forget the travertine tile kitchens, subway tile bathrooms, and laminate wood floors. Throw some paint and new handles on those cabinets because the 1950's -> 2000's look is HOT. And paint at least one wall in the living room a different colour. Throw some fresh sod on the front and back lawns, too! Don't forget those ugly-ass fishbowl-style sinks, too.
And you absolutely must go for the never-lived-in look with all rental furniture.
Gah! I've watched too many failures-in-progress on TV!
Well gee, if banks had not given $750,000 mortgages to people with no proof of income, and home flippers weren't so greedy ripping out brand new kitchens to put in a slightly newer $50,000 one in hopes of cashing in on a $100,000 quick profit, and idiots realized that with $25,000 income they can't afford to live in an expensive house... we wouldn't be in this dilemma. Also, it's called a market correction - These houses are WAY overvalued.