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The sun belt took wind out of their sails. And even they are starting to see softening demand. Miami just cancelled an A-class commercial high rise due to weak
by yardie 2y ago
The sun belt took wind out of their sails. And even they are starting to see softening demand. Miami just cancelled an A-class commercial high rise due to weak demand. In Austin, rents are tanking.
It’s very hard to revive a town or city when the tax base is way down. I thought Detroit was going to succeed but they simply have too much ground to manage with their revenue. And there isn’t a way to shrink a shrinking city.
- nradov 2y agoInsurance premium increases have killed a lot of the housing cost advantage that Florida used to have.
- boringg 2y agoAnd Canadians have been shedding property in droves due to high cost (USD-CAD), your comment on insurance and general antagonistic policies at a Federal level.
- arrowsmith 2y agoWhy are the premiums going up? Hurricanes?
- kccqzy 2y agoMany large insurance companies leaving Florida. Their last-resort insurance, Citizens Property Insurance Corp, is perpetually one bad hurricane away from insolvency. Well technically they cannot be insolvent but they are allowed a premium surcharge on everyone, including those who do not have their insurance.
- jetrink 2y agoIncreasing hurricane risk yes, but also a dysfunctional insurance market. There's a business model where roofing companies will approach homeowners telling them they have hurricane damage and are eligible to receive a free roof. The hurricane might passed through years before, but any damage that was overlooked is still the responsibility of the insurance company. The homeowners are surprised to learn that their roof has damage, since they haven't noticed anything wrong (and there is in fact no damage), but free is free, so they sign the contract. The roofing company files a claim, the insurance company denies it, the roofing company sues, and since a lawsuit costs more than a roof, the insurance company backs down. Then after this has happened repeatedly, the insurance company raises their rates or leaves the state.
- lowercased 2y agoWe did this. Hail damage. There wasn't no damage. We'd had a hail storm. But... we've had them before. The root was 17 years old at that point, and... the last storm sort of tipped things over to the "needs repair" side of things. We may have been able to leave it a while longer, but do we wait until it's leaking, causing more damage? Insurance company sent an inspector, took pics, etc. Interestingly, they denied the claims of many of our neighbors, but ours was 'bad enough' to justify replacement. This still cost us several thousand of of pocket - it wasn't like it was 'free roof!' time.
- jollyllama 2y ago>It’s very hard to revive a town or city when the tax base is way down. I thought Detroit was going to succeed but they simply have too much ground to manage with their revenue. And there isn’t a way to shrink a shrinking city. That's one way to look at it. The problems of decades of urban decay make these places unattractive to outsiders, so it's a catch-22.
- toast0 2y ago> And there isn’t a way to shrink a shrinking city. You could probably disincorporate parts of the city, but I assume that would require consent of the owners/residents and the county. Of course, reducing the incorporated area also reduces revenue, so it might leave you with similar revenue vs cost mismatches, but a smaller area.
- skybrian 2y agoThe decline in rents in the Austin area is due to building more housing, according to this article: https://www.texastribune.org/2025/01/22/austin-texas-rents-falling/ https://www.texastribune.org/2025/01/22/austin-texas-rents-f...
- ec109685 2y agoIt also stopped growing rapidly: https://www.austintexas.gov/news/new-census-data-austin-metro-slips-top-spot-remains-one-nations-fastest-growing-regions https://www.austintexas.gov/news/new-census-data-austin-metr...
- oldpersonintx 2y ago[dead]