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Originally Posted by ardecila
Zoning is an issue sometimes, but Chicago's bigger problems are high interest rates, high construction costs and inconsistent demand. It's tough to make things pencil.
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A Minneapolis developer was just discussing this issue. Labor costs and Interest rates have stalled construction in many cities.
If Chicago gets at least modest mid-rise construction this decade, that will be a success story.
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Rents in Minneapolis need to grow 15-20% to justify the cost of new construction.
You won't see many new buildings in the city until that happens.
Not an opinion. Just math
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Will be minimal. Labor up so much that any material savings won't help a ton. Maybe we get to 3-5% max
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Agreed. And yes, anything they can do to help on the cost side helps.
If costs went down 10% and rates come down to 4%, we'd only need 9-10% rent growth.
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https://x.com/seandsweeney/status/18...946831120?s=46
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