Toxic drywall has caused a housing boom tragedy. What started out as a good thing for the economy, has turned into a disaster. Houses that once had value, now have none. Like asbestos before it, toxic drywall has sparked lawsuits across the country. If your house smells like rotten eggs, you have appliances going out, and your fixtures are corroding or covered with soot, your home may have been built with toxic drywall from China.