Study: Housing Bust Turns Parts of Sun Belt…into Rust Belt
Now there appears to be actual data to back that up, according to a study from the Research Institute for Housing America, a division of the Mortgage Bankers Association.
“A traditional city in decline is one that has suffered a sustained population drop, leaving behind empty houses, apartment buildings, offices and storefronts. Cleveland and Detroit, for instance, suffered from the erosion of manufacturing and the loss of residents, who left in search of jobs.
Instead of eroding a particular industry, however, the housing bust left a glut of homes because of overbuilding and the foreclosure crisis. Follain (The study’s author) argues that the future of these cities is threatened in similar ways to that of Rust Belt cities.
‘Long-vacant neighborhoods are going to develop, and we can imagine what can happen,’ he said, including potentially higher crime and lower property taxes.”
Particularly hard-hit, are inland areas of California, this article says, as well as places in Florida and Nevada.
Read the study here.