New Victorville Construction Demo'd Amidst Bankruptcy, Vandalism

A brand new 16-home housing development in Victorville is being demolished this week at the direction of the Texas bank who owns the property - Guaranty Bank of Austin. The bank foreclosed on the property in December 2008 after the developer filed for bankruptcy. The development was located on Bear Valley Road at US-395 in Victorville, the high desert town located about 85 miles northeast of Los Angeles. The 2-story homes, most of which were only half complete, were touted as luxury homes, and slated to sell for $375,000 each.

In fact, the high value of the interior finishes and appliances was the chief reason the development has been heavily burglarized and vandalized since its stagnation last year. The City of Victorville laid heavy fines on the Guaranty Bank for code violations related to the resultant vandalism and "blight" on the property. The occupation of foreclosed homes by squatters and drug addicts is a problem on the rise across the country, but is particularly embarrassing and problematic to this exurban "boomtown." San Bernardino County, where Victorville is located, was slammed with a 60% plunge in home prices since 2006.


The bank made the decision to demolish the property after it was found to cost only $100,000, as opposed to the $1 million+ it would take to finish building the development. In the end, the venture will be counted as a major loss to the developer and the bank alike, but their escape will be timely in the face of a crumbling market. Environmentally, the demolition of a mid-construction project is appalling, especially in an area where cheap, fast construction continued unabated for years due to apparent demand. But according to the demo company, the spent lumber will go toward mulch for landscaping and new construction in Mexico. As if drug violence and swine flu weren't enough to endanger our neighbors south of the border.