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Vacant Homes: 14 Million (Early 2009), 14 Million (2012)

Written by Gary North on December 7, 2012

Has housing bottomed? No.

In early 2009, there were 14 million empty houses in the United States, for whatever reason.

In October 2009, there were 18.8  million.

In 2011, there were 18.4 million.

Today, there are 14 million.

In other words, we are back to the level of early 2009. That was a recession year.

This is not evidence of a bottom. This is evidence of a market that does not clear. But free markets always clear. Conclusion: this is not a free market.

There are sellers who cannot sell. There are would-be sellers who will not list their homes for sale.

There are up to five million families living with free rent: mortgages in default. The banks will not foreclose.

Find a seller who has to sell. He will bargain. Buy it. Then rent it. Rents have not dropped on vacant rental units.

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4 thoughts on “Vacant Homes: 14 Million (Early 2009), 14 Million (2012)

  1. Another "d*mned-if-you-do-d*mned-if-you-don't" situation. All those empty houses continue to depreciate, deteriorate and become targets for copper thieves. Yet if all that inventory were to be put on the market at once, housing prices would plummet and many sellers would have to slash their asking prices and would immediately go into default, triggering another tsunami for foreclosures. Ain't private central banking grand?

  2. If not for the medeling of the government and the central bank, today we would have a real tsunami of forclosures._If not for the medeling of the government and the central bank, yesteryears, we would have market based forclosures._

  3. When you have a debt-based economy, you eventually arrive at the brink where we are today. You always end with more debt than you have productivity with which to pay off the debt. The Fed's market manipulation and continuously running the printing presses to flood the world with fiat currency distorts the economy just as the first 2 central banks America was saddled with did. Before we had leaders with the foresight to kick them out, and today we need an intervention before the latest central bank scam destroys us a third time.

  4. The fact that over 4 million houses were sold in one year doesn’t tell you anything, Gary? Good grief. You need to go back to school, you’ve clearly forgotten basic economics. Or you’ve deluded yourself with propaganda, either way you’re a fool.