Bank
of America has announced plans to bulldoze 100 foreclosed homes in
the Cleveland, Ohio, area. The land will then be donated to local
government. BofA has announced a push to rid itself of homes worth
less than $10,000. Demolition plans in other cities are expected to
follow.
The
plan is part of a broader strategy by the entire banking sector to
find ways to eliminate excess supply in the housing market, as other
banks have announced plans to follow suit. Currently 1.7 million U.S.
homes, about one in every 77, are in some stage of foreclosure. Banks
wish to get these homes off their books as fast as possible in order
to avoid paying property taxes and maintenance costs. It would take
almost 10 months to sell the homes currently on the market.
While
banks demolish unprofitable housing stock, as many as 3.5 million
Americans experience homelessness in a given year, highlighting the
irrational nature of the capitalist system.
