More than a half century ago, Levitt homes had become synonymous with the notion of middle-class suburbia when the home builders created Levittown, a post-war community of mass-produced housing in New York. Other Levittowns quickly dotted the eastern seaboard in areas throughout New Jersey and Pennsylvania.

In recent years, though, Levitt and Sons accumulated debt, and with the downturn in the housing market, found themselves struggling to compete against industry building giants like Toll Brothers. National Public Radio reports that when the company filed for Chapter 11 bankruptcy in November, Levitt halted construction on dozens of projects from South Carolina to Florida. And many of its customers are now stuck with unconstructed homes.

Vacant homes
In Port St. Lucie, Fla., occupied homes sit next to unfinished houses in the part of the Tradition community built by Levitt and Sons. While homes are still being sold by other builders in the community, all construction on Levitt-owned properties in the neighborhood stopped after the company declared bankruptcy. Out of 1,200 planned homes, only 90 are currently occupied, NPR reports.

This Florida coastal community, which boasts flashy amenities such as a golf course, a 38,000-square-foot clubhouse, a dozen tennis courts and two swimming pools, was suppose to attract droves of new families and retirees. Today, however, the streets remain quiet as residents come home to vacant neighborhoods. Homes in the community range from $200,000 to $500,000. Port St. Lucie ranks fourth on the list of 291 metro areas with the lowest rates of home appreciation, according to a recent report by the Office of Federal Housing Enterprise Oversight.

Levitt’s legal problems
NPR reports that a bankruptcy judge in Fort Lauderdale is currently sifting through the claims competing for Levitt’s assets. And the good news for Tradition residents is that Levitt’s lender, Key Bank, recently foreclosed on the property and hopes soon to find a builder who will resume construction.

But even with a new builder, it’s a tough market for new-home sales. The Commerce Department reported last week that sales of newly constructed homes dropped 2.8 percent from December, to an annual rate of $588,000. It was the third consecutive monthly decline. The median price of a new home sold in January fell to $216,000, down 15 percent from a year ago. Leading builder, Toll Brothers, reported last week its fiscal first-quarter sales tumbled 23 percent, leading to a $96 million loss. But let’s hope that things start looking up for Tradition. I hate to see that beautiful golf course not get the play it deserves.

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