Despite what might seem like impending oversaturation — thanks to billboards and bathroom stall ads flaunting Photoshopped pictures of lofts with dramatic views — downtown condo development still has a lot of growing room. According to a city-funded study done in 2003, Nashville has one downtown resident for every 19 jobs. Compare that with Memphis, which has one downtown resident for every seven jobs. In Chattanooga, it's one for every five.
Good
"Long-term, I feel like downtown living's gonna happen. Short-term, I feel like developers are asking too much money," says Jeremy Kelton, a Realtor who flipped a unit in the Bristol on Broadway building in 2005 and says he owns two other urban condos. "Somebody — some investor, some development company — is gonna get stung."
Bad
We'll just have to wait and see.
2 comments:
The problem is not the number of condos coming, the problem is the "luxury" moniker. Construction costs have risen so much that it is hard for developers to deliver an affordable product...trying to pass it on to the end user is a problem.
The condo flippers are ultimately who is going to get burned if the developer has good contracts with the buyers. Viridian flippers are trying to double their money and it's not working!
I suppose that I am a little more worried than you are...I have spoken with more than 40 individual buyers and here is their sentiment about the Icon in Nashville.
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