About half of that is due to foreclosures.
Read about it here.
And it’s just getting started. A lot more people are waiting to get evicted than are waiting to buy. From a market perspective, there is no reason – none whatever – to be buying a home right now. Like catching a falling knife. You just lose your fingers and the knife keeps falling.
On the other hand, people have to live somewhere.
I was always amazed by the McMansion neighborhoods that seemed to be all over suburbia in the 1990′s. Not just the houses themselves, but everything that went along with them – the need to fill them up with stuff, the ridiculous distances you had to travel to shop or work – was flagrantly unsustainable. It was wasteful pseudo affluence. It’s crashing to earth within twenty years.
Still, people have to live somewhere.
I have proposed the 28th amendment and specifically its jubilee provisions primarily to cushion the fall. People will still have to make other arrangements, and they should, but at least they won’t have evictions hanging over their heads.
In the end, though, a lot of those neighborhoods are going to be bulldozed. So many people bought them, but they are inherently undesirable dwellings.