
Originally Posted by
Urban Pioneer
Plenty of people leave downtown. I know many of them. Ironically Deep Deuce and the other apartments are incredible "suburban development generators".
People move into the CBD, and get accustomed to generating the income and paying the $850 - $1,650 per month rent. After several years of doing this, many of them start to realize, 'Geez! I could own a freaking home for what I'm paying here! And it might actually be an investment I can get some money back on later!' And many of them come to this conclusion often with or without kids.
The suburban developer has efficiently generated a product that fits within this monthly rate and they are seduced to the suburbs because there is no reasonable quantity of "for sale" product that matches the rental rate people are paying downtown.
The dynamic that has changed is that the amenities downtown have become so seductive in their own right, I suspect people are willing to rent for longer periods of time to enjoy them.
But downtown does have a long term problem, a lack of people that are directly invested in it. While we have developers now that seem to care and be good partners, when apartment projects start to get flipped and deteriorate, we'll be wishing we had more homeowners scattered around to help keep them accountable.
I personally believe that we need a well constructed quality condo tower that provides housing financed at monthly payments equivalent to rental rates or we need to be chopping up Urban Renewal parcels and offering small"personal sized" lots for redevelopment by individuals and their architects.
Bookmarks