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February 17, 2006
Will there be a demand for Ratner luxury housing in the future?
Could an ominous grouping of clouds presage a perfect storm of market forces that could put a damper on the need for Ratner's 2,800 luxury condos and 2,250 units of market-rate (aka luxury) rentals, on top of the thousands of units of luxury housing already in the pipeline in Brooklyn?
From Federal Reserve Chairman Bernanke's comments to Congress:
Some cooling of the housing market is to be expected and would not be inconsistent with continued solid growth of overall economic activity. However, given the substantial gains in house prices and the high levels of home construction activity over the past several years, prices and construction could decelerate more rapidly than currently seems likely.
Speculation in luxury condo market could drive prices down, from The NY Times:
Speculators in this and other buildings are putting dozens of units on the market at the same time, causing asking prices and profits to slip.
Volatle pricing at 85 Adams, from Curbed.com.
NoLandGrab: The growing concern is, if the Atlantic Yards project is approved and the bottom falls out of the luxury housing market, Ratner-Gehry luxury housing would be an enormous Forest City Ratner white elephant.
Posted by lumi at February 17, 2006 11:14 AM