Guaranty Bank acquired the 16 properties through foreclosure and was facing a US$1m bill to finish them ready for sale. In comparison, demolition cost only $100,000.

The bank brought in the wreckers last week. It had faced fines from the local government over the development because squatters and vandals had taken over the half-finished homes, leaving behind graffiti and drug paraphernalia. 

The subdivision project commenced in September 2007, but building ground to a halt in mid-2008. The bank took possession in August.

The project developer had hoped to sell the homes, of which four were completely finished, for more than $300,000. But house prices in the San Bernardino County, where the homes are located, fell dramatically - 60% from a peak in 2006.

Although demolition is not yet a common sight in California, the LA Times reports that abandoned developments are - 250 developments totaling almost 10,000 homes have been halted.