Boom, Crash and Whoosh
When the building boom crash comes as it surely will, this time around it's for the same old reasons: high prices by the developers and construction industry (both of whom are inisightful but always short-sighted folks) and inflation plus the mindset of young married couples who must have a new home (which will quickly turn into a repossession or be put up for sale before the shift (in their spendable income) hits the fan.
What brought this glaringly to my attention was the short hiatus in Nashville I had when I went to Nashville to escape the 'Wrath' of Hurricane Dennis which turned out to be highly over-rated. The subdivisions they're now building in Nashville (which could and should be called a 'strip city') contain homes ranging in the quarter million dollar range and up. I saw no middle-income subdivisions nor low-income single family housing except for a 'project' which will be doomed for falling apart in the nearest of the near future.
So, the cycle continues: Boom, Crash, and now Whoosh as the inflation bubble bursts. The industry (to use an old axiom) needs to wake up and smell the roses (along with the whoopee, let's spend government) before we all wake up and smell nothing but stinkweed.
What brought this glaringly to my attention was the short hiatus in Nashville I had when I went to Nashville to escape the 'Wrath' of Hurricane Dennis which turned out to be highly over-rated. The subdivisions they're now building in Nashville (which could and should be called a 'strip city') contain homes ranging in the quarter million dollar range and up. I saw no middle-income subdivisions nor low-income single family housing except for a 'project' which will be doomed for falling apart in the nearest of the near future.
So, the cycle continues: Boom, Crash, and now Whoosh as the inflation bubble bursts. The industry (to use an old axiom) needs to wake up and smell the roses (along with the whoopee, let's spend government) before we all wake up and smell nothing but stinkweed.
posted by porchwise at 8:43 AM
7 Comments:
Many homes will retain their value. The crash will be made up largely of cheap pieces of crap that people, too dumb to buy, will have to pay for.
You pay 650,000 for a lame apartment in some city, you deserve to lose money. But a 3 million dollar apartment in SOHO? It will never lose value, short of world war 3.
Don't say that! I work for Cabinet Manufacturing Company.
It is even worse here in Montgomery. East side is building to suit the upper class and the central and west is making way for the middle and lower class.
And we all know where the crime will be....
Oh, and thanks for saying hi to me as you drove past Millbrook on I-65 to escape that letdown of Dennis....
hey porch, I've noticed that some of your male commentors are gay.
Are you in the closet?
lol
Does your lovely wife know?
lol
Not to mention all the adjustable rate mortgages and home equity lines of credit people took on. Craziness man. Hope these people planted tulips in their backyards!
Come on, Mojo, some of those gay bloggers are good writers. When I read something worthwhile, I usually comment on it (or something funny) like you. And from what I gather from your blog, you are not gay either but you must read them to be aware of my commentators.
And Alex; I wouldn't live in New York or any city, for that matter. A visit once every ten years is about all I can stand of any large city.
lol, you know I have to jibe you on that,
I think it is a southern thing...
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