There are several counties in America, each with more than 10,000 homes, which have vacancy rates above 55%. The rate is above 60% in several.
Most people who follow unemployment and the housing crisis would expect high vacancy rates in hard-hit states including Nevada, Florida and Arizona. They were among the fastest growing areas from 2000 to 2010. Disaster struck once economic growth ended.
Palm Coast, Fla., Las Vegas and Cape Coral, Fla., were all among the former high fliers. Many large counties which have 20% or higher occupancy rates are in these same regions. Lee County, Fla., Yuma County, Ariz., Mohave County, Ariz., and Osceola, Fla., each had a precipitous drop in home prices and increases in vacancy rates as homebuyers disappeared when the economy went south.
Data from states and large metropolitan areas do not tell the story of how much the real estate disaster has turned certain areas in the country into ghost towns. Some of the affected regions are tourist destinations, but much of that traffic has disappeared as the recession has caused people to sell or desert vacation homes and delay trips for leisure. This makes these areas particularly desolate when tourists are not around.
The future of these areas is grim. Our research showed that many have sharply declining tax bases which have caused budget cuts. Forecasts are calling for the fiscal noose to tighten on them even tighter.
These are the American Ghost Towns of the 21st century. Each has a population of more than 10,000 along with vacancy rates of more than 55%, according to the 2010 U.S. Census.
4. Worcester County, Md.
Number of homes: 55,749
Vacancy rate: 60%
Population: 49,274
The Maryland State Department of Assessments and Taxation recently estimated that the county would have a sharp drop in its tax base in fiscal year 2012 and "another, more drastic, revenue decrease" for the fiscal year that follows. The twin engines of county's economy are tourism and agriculture. Experts believe the tourism business in Maryland's Eastern Shore could stay crippled for years.
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I'm sure a lot of that has to do with the high quantity of vacation homes in Worcester County.. Tons of homes in the north end of the county are second homes for people.
ReplyDeleteA "second" home, huh? I'll bet they are whining abvout their tax rates, too. LOL. What to do about those declining revenues? Busines owners will raise their prices (THEY have "second" homes in Florida that need upkeep) and the government will raise taxes, fines, fees, surcharges and put the police on continuous "campaigns"....coming soon--- a "campaign" to catch tourists using their cell phones while coming to this area to spend money. They just don't know there are some surprise expenses we have in store for them....ever wonder (now that highway deaths are the lowest in 50 years) what is the next "dangerous" thing drivers and citizens are doing that will require a new law and a new "campaign"???
ReplyDeleteOcean City sold it's blue skies for a bunch of condo units that nobody wants.
ReplyDeleteFor anybody thinking of going to OC for vacation, look to rent a condo for a week instead of staying in a hotel. It's much cheaper, for as long as the hotels want $300+ a night for a room.