In Canada we remain isolated from what is happening in many US Cities - isolated for now.
As we explore what it is like in the places hit hardest such as Ohio - that have had the jobs go forever - we see the emergence of Ghost Towns. Once unemployment reaches 15%, they seem to die. Here is a story I found on MarketPlace:
"It makes you wonder, if for different reasons, we’re going to see more ghost towns across America. Just think of all those subdivisions and shopping malls that are being abandoned.
John Wasik, author of “The Cul-De-Sac Syndrome: Turning Around the Unsustainable American Dream,” says this:
“The whole premise of the ‘Cul-De-Sac Syndrome’ is we hit a dead end,” he said. “We hit a wall of unaffordability. I want to convey the idea that we are building, selling and developing communities that are not sustainable.”
“Sprawling urban areas with no public transit or connection to a central city … will become ghost towns if high energy prices return and persist,” he writes, adding that both scenarios are likely in a healthy economy.
From an LA Times real estate blog:
A financial analyst fresh from a tour of construction sites in the Inland Empire (east of LA) is warning Wall Street of a “ghost town” where finished homes sit vacant and additional homes are still under construction.
“At several properties, there were a significant number of fully built homes sitting vacant along with a large number of additional homes still under construction,” Sandler O’Neill & Partners analyst Aaron Deer wrote today after touring developments in Corona and Ontario. “At one master plan community, the entire development appeared to be vacant — with the exception of crews working on new construction, it was a ghost town.”
And that was a year ago.
As we talked about a few months ago, cities like Flint, Michigan that don’t want to wind up like Cairo might just tear things down and start over, thinking smaller this time.