Quote:
Originally Posted by BG918
I know you're joking but it takes 20 min. just to get through downtown at rush hour. Any of those developments are easily a min. 45 min drive to downtown in the best conditions, and hours (plural) when there is snow.
At some point this has to translate into more condo towers. They built several back in 2006-08, didn't we have the same legislation back then? Where are proposals like Spire and 1401 Lawrence (when it was a 50 story condo tower)?
|
Obviously the big thing back then was easy money to people who really shouldn't have been borrowing. There's people in my building who got $0 down loans. It was probably like fishing with dynamite for condo developers for a while (before the bottom fell out).
Lending standards now are so much more strict.
Add in the increased construction costs, increased land costs, increased insurance premiums, and the risk involved in a 300+ unit building and it's not surprising.
We'll probably start to see smaller condo projects first. In fact, there is one just listed on the MLS in Rino/Balpark.
http://www.factoryflats.com
Just like some crafty small-time developers turned to stick-built townhomes in the last few years. There's no doubt been a few people around town get very wealthy off of this product. They just don't have to compete at all with condos currently. If you want new attached, you're resigned to a townhome.
A handful of new condo buildings just probably won't be the panacea that some people think it will be for prices. The precedent has been set for certain price thresholds and barring a calamity those are here to stay. Denver's long-term indicators are very solid, and the "affordable" housing prices long-time residents remember will never return. New condo buildings are very much indeed needed, hopefully will come soon, and hopefully will stabilize prices somewhat.
Apartment buildings have been the more low-hanging fruit.
Sure, we hear a lot about condo demand. Every millennial and his brother wants to own a sexy downtown condo, but many who I meet don't know the first thing about getting financing, and really don't have the funds, salary, etc. to qualify, unless they either have a trust, family money, or like Bunt said make $150,000.
The people in my sphere (and I'm a millennial- albeit on the older side) would not trade renting for "as much house as they can buy" in the 'burbs. There's lots of millennials though and certainly they're not all the same.
If you did an FHA loan on a $400,000 (1,000') condo now, your out the door would be probably be more than the $2/ft. to $2.5/ft it is to rent in one of these new buildings. Then if you get that dream job offer in San Francisco or NYC, you can't just up and leave because you have an illiquid asset on your hands. If you are renting, you pay a lease break or sublet and you are gone. These are just a few of the many reasons younger people (en masse) are more interested in renting. You don't want to get locked into something for (gulp) 5 years. That's like 3 new updated iphones
As far as a few 8 story buildings meeting the demand? Well, as you know, the majority of the city is zoned 5 story and less except for the core. And, in the core, there is a ridiculous amount of residential mid rises going in. It just doesn't happen to be for sale product.
Prev
Linear Mode
