I doubt if we’ll see fires lighting up the night sky by burning perfectly good houses.
The problem with this is some areas don’t have an excess of homes. What we have are prospective buyers with too much debt and not enough savings. They want the homes, they just don’t qualify. And I have no idea how to solve this problem and my livelihood depends on the home building industry.
No fires, but people are willing to let the homes fall into disrepair. We saw this in cities in the 1970s in some urban ghettos. Structures of all kinds were allowed to fall into a state of extreme disrepair.
The thing we have to do -—in my opinion — is treat each homeowner as a small third world country that has taken on too much debt — work out new terms and keep the loans on the books. Forcing money downward through the banking system may not work...we need to do the labor intensive thing, forcing money upward.
This is just my opinion and I could be completely wrong.