Quote:
Originally Posted by 3rd&Brown
It's a dangerous misattribution to blame the lack of new construction on the phase out of the abatement. Although phasing out the abatement certainly doesn't help, it's my firm belief that the abatement increases land values more than anything else (we've all seen developers get zoning changes on pie in the sky proposals then flip the land for significant profit). If anything, it will just bring down land values and the numbers will pencil out in the same way.
If you pay too much for your land, regardless of incentives, you're project is not going to pencil out.
The real culprit for the slowdown in new construction is 1. tariffs on construction materials, 2. uncertainty around #1, 3. high interest rates, and 4. the sinking economy.
The abatement would be #5 at most.
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You are putting words in my mouth...
I didn't blame anything on the abatement, I pointed out the timeline... I also mentioned a national slowdown, which should have hinted that its not Philadelphia specific, due to a multitude of factors (due to the reasons you mentioned, and also, but to a lesser extent, the abatement, all of which I figured was known in this forum).
I stated that
not all construction has slowed down in Philadelphia, just high-rises.
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