Speaking at the Federal Reserve Bank of New York, HousingWire tells MHProNews Federal Reserve Governor Elizabeth Duke says the 1.6 million vacant houses across the nation are stalling a housing recovery, as well as harming surrounding house values. Those not on the market in particular present a danger because they tend to fall into further disrepair. Duke says investors will repair the more high-end homes and turn them into rentals, while the lower spectrum homes may receive government assistance. She says, “Doubtless there will be costs associated with solving these problems, but it is important to also consider the costs of doing nothing. For example, it costs local taxpayers to let vacant buildings decline, it costs money to tear them down, and it costs money to convert them to a better use.”

(Photo credit: DorNob–abandoned house)