A financial analyst fresh from a tour of construction sites in the Inland Empire is warning Wall Street of a “ghost town” where finished homes sit vacant and additional homes are still under construction.
This is in the Inland Empire area of southern California. Developments of large high-end homes in remote areaslay partly completed, with empty homes and no buyers.
The cities where these homes are will face revenue shortfalls, which will mean service cutbacks. That in turn will mean more people will leave.
The State of California will soon have regulation requiring that abandoned homes mut be maintained. That such a law just passed the legislature and will be signed by Schwarzenegger shows that such ghost towns are becoming a state-wide problem.