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July 31, 2006
Developers nix or delay condo projects as sales slow, costs rise
AP, via USA Today
This article about the slowdown in the luxury condo market appeared in papers nationwide (locally, in AM NY).
PHILADELPHIA — More and more developers are canceling or delaying condominium projects as home sales slow, construction costs soar and lenders balk at financing units that might not sell.
What's making the situation worse is a glut of high-priced condos and too few people who can afford them.
NoLandGrab: Locally, tons of luxury condos are already in the pipeline and the demand for Starchitect-designed luxury condos has never materialized.
Forest City Ratner Atlantic Yards Development Group President James P. Stuckey has repeatedly claimed that the luxury condos "allows us to do the cross-subsidization" for affordable housing.
Are we expected to belive that in order to meet the affordable housing goals for the project, Ratner is pinning his hopes on a non-existent market for Frank Gehry-designed luxury condos? Or, does Stuckey make this stuff up because the public hasn't seen the financial projections for the project and can't tell if he's telling the truth or not?
Posted by lumi at July 31, 2006 4:33 PM