"Who's Going To Buy All These Knockoffs?"
Folks in Baton Rouge have been talking about the large number of homes being built in the area, and now, one fellow thinks he knows why. "Toss in the scores of smaller developments and the condo and townhome frenzy and the number could swell to more than 20,000 units over the next five years, depending on pace of filings and absorption."
"This is all happening at a time when people are fleeing Baton Rouge like Castro was mayor. Last year alone over 1,300 more people left here than moved here."
"So how do you explain it? Those in the business can't, though this notoriously optimistic bunch is quick to say there's no cause for alarm."
"I'm guessing the answer to our real estate riddle rests with area bankers desperate to boost revenues. And in today's climate, the fastest way to serious cash is commercial and residential loans, explaining why anyone with a set of blueprints pretty much gets approved."
3 Comments:
What's so funny about this story is the fact that so many of those in the real estate industry point to California and say, "maybe there's a bubble there, but not over here," yet, of all places they are throwing up a bunch of condos in Baton Rouge. Nothing against Baton Rouge, but who is busting the door down to move there. The same can be said about my home town of Dallas, TX. I can't see who is going to buy up all the new "upscale" condos that are going in around downtown. There must be thousands of new ones going in including ones associated with the W hotel chain and the Ritz Carlton hotel chain. It goes without saying that those aren't cheap (at least in price).
I don't understand how can any one say the bubble is not nation wide when we are seeing at least 20% overpriced or excessive new constructions in the areas over 60% of americans live?
I guess only few mid west States don't have the bubble?
Anon in Dallas,
Keep us up on your neck of the woods. BTW, Louisiana and Mississippi lead the nation in mortgage defaults.
The only states without a bubble are already in a bust. Even the press says that RE is the only thing pulling the economy, without that, you've got layoffs. Thx.
Post a Comment
<< Home