The effects of the recent housing crisis extend beyond creating misfortune for those who lost their homes. It has also had a sweeping effect on housing developers and condominium developers in particular. Across the country, thousands of unfinished condo projects scar the landscape of metropolitan areas. If you’re in the midst of a home search and want to know whether these projects will be completed, read on to learn how and when these vacant homes might someday be for sale.

City governments and others are getting involved

City officials in scores of urban areas are taking note of the unfinished housing projects that abound. Many have resolved to take action rather than let the half-finished projects negatively affect the neighborhoods where they stand.

In some cases, public housing ventures are the solution. Other situations are attracting investors, while still others are purposely being overlooked.

So which neighborhoods get first priority?

As far as most city officials are concerned, the most attention should be given to neighborhoods that have already suffered from years of disinvestment. They’re also paying closer attention to neighborhoods with high crime rates or areas that are considered “transitional.”  In other words, areas that pose the risk of rapid decline if they’re not given rapid attention. In most cases, this means cities are poised to invest in smaller condominium projects.

The areas where officials aren’t prone to invest public resources are neighborhoods where private investors are more likely to be drawn. This includes upscale neighborhoods and locations where housing demand was generally high before the housing market collapsed.

Who benefits?

The people who are most likely to benefit from the attention being paid to defunct condo projects are those in need of affordable housing. Many city councils across the country view vacant condominium projects as a new asset in the fight for reasonably priced homes.

Unfinished building projects in neighborhoods chosen for investment by city governments will be assessed on a cost-versus-benefit basis. The final decision for investment will depend on the amount of subsidy dollars needed to produce each new, affordable home. This in turn will be compared to the likely selling price of each condo home and whether filling those homes will contribute to a stable neighborhood population.

Other uses for abandoned developments

Along with creating affordable housing, many cities are employing creative thinking when it comes to restoring abandoned developments. Some development projects are being converted for use by nonprofit programs that provide services to the homeless and other groups in need.

Other projects are underway to convert buildings into luxury condos that can be sold at the higher end of the pricing spectrum, thus bringing in more revenue for the local government that put up the original investment.

Abandoned developments are still surfacing

Although the bulk of the housing crisis is behind us, many condo developers are still teetering on the brink of bankruptcy. Officials and market analysts predict that a fair number of unfinished condominium buildings have yet to be seized by their banks, sending them into the pool of consideration for public housing.  On the downside, there is no way city officials in most metropolitan areas will be able to restore all the abandoned construction sites for affordable housing purposes.

If projects in your area continue to fall to bankruptcy, it increases the chances that each building will go down in price. If your city can’t afford it, it’s possible that investors will step in for bargain prices with the intention of finishing the building project so the vacant homes can be put up for sale. Given the high availability of such homes, prices are likely to stay low for a fair amount of time.

The positive hidden agenda

Ultimately, city officials want to make sure the abandoned constructions sites of bankrupt condominium developers don’t end up hurting the neighborhoods where they sit. They also want to protect the communities of affordable housing that already exist in these areas. To do this, they will have to finish the condo project through use of public funds. In the end though, these actions will create more vacant homes for sale that in turn will attract new home buyers.

If you’re in the midst of or about to begin a home search, consider looking at new condo developments – especially ones that have been taken over by your local government. Prices are likely to be lower than they would have been if a private developer had finished the job. Better yet, areas where you’ll find such bargains are often subject to much attention from government officials and may benefit from further improvements down the road.

Even if this puts you in a neighborhood that feels transitional, consider making the move and waiting it out. You may just find that you’ve landed in an up-and-coming living location for your city.