Aberdeen City Council has confirmed approximately 500 homes affected by Reinforced Autoclaved Aerated Concrete (RAAC) are to be demolished.
Hundreds of residents in the Balnagask area of Torry were evacuated from their homes after 366 council houses and 138 private addresses were deemed at risk of collapse in February.
Homeowners have carried out protests outside city council buildings calling for more financial and mental health support during the relocation process.
The council said several remedies were considered – including roof replacement – however demolition was judged to “offer the quickest and most cost-effective way” to remove it.
The council confirmed demolition and landscaping is estimated at £20-25 million and will take between three and four years.
It is estimated building new homes will cost around £130m or more and take between five and fifteen years.
Rehomed council tenants are being told they will be given first refusal on a replacement home matching their need, the council said.
It will also aim to purchase the private properties by voluntary agreement to allow demolition to proceed.
John Meiklejohn, a homeowner told STV News: “I’ll be left in tens of thousands of pounds of minus equity.
“At my age, I won’t get another mortgage. So, I’m going to be looking at having to rent while still having the remainder of my mortgage to pay off.
Lynn Winstanley, also a homeowner, added: “They’re going to have to pay a mortgage for a home that has been flattened and still be able to find somewhere else a home to live.
“They’re going to be basically homeless and in financial ruin.”
Councillor Miranda Radley, convener of the Communities, Housing and Public Protection Committee, said: “This is one of the hardest decisions the council has taken.
“We recognise the impact this will have on residents, many having lived in their home for many years.
“The absolute priority has to be their safety. The welfare of people is what matters most, and we will continue to offer individuals and families one-to-one support whilst meeting their housing needs as far as possible from existing stock.
“The council will also explore providing a mix of new homes for the longer term, and we look forward to working with the local community and potential partners in developing the regeneration plans.”
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