Demand for new homes continues to erode and one reason is that high-profile builder bankruptcies have made people anxious to sign on the dotted line. And with good reason: People like the Carias family in north suburban Chicago are getting stuck with half-finished houses and thousands of dollars locked up in bankruptcy proceedings.
Analysts say as more builders declare Chapter 11, this fear could hobble any housing market recovery ”” especially in the area of new home construction.