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I don't think it's that simple, especially when talking about things like "luxury" development that changes the city's housing standard.
by gozo 11y ago
I don't think it's that simple, especially when talking about things like "luxury" development that changes the city's housing standard.
- paulsutter 11y agoImagine you're the loan officer in a bank. A developer comes in and says "I need a loan to build a luxury building. There's no projected demand, but that doesnt matter, becuase luxury buildings /cause/ demand for luxury units". Seriously, would you loan him the money? When you view it from the perspective of a property developer or bank, it's pretty clear that projected demand is the /cause/ of building construction and not the other way around. Amazon moving downtown will create a lot more demand for higher end units. And that demand is the reason higher end units are being constructed. Amazon's plans for their downtown campus (it's huge - all the way over to Denny) /caused/ many residential developers to buy and develop lots downtown. Think about those 45 minute waits to get on I5 right now. Imagine what it will be like with thousands more Amazon employees in line. All those people waiting in line will be thinking "I need to move downtown, this commute is crazy". That mental image is projected demand. If you picture that, you too will want to build apartments downtown.