Downtown Chicago’s condo development boom has ended. Here’s why

[DCReid]

For the first time in years, there are no new large condo projects under construction in downtown Chicago.

Roughly 2,500 condos have been developed downtown since 2015 as multiple towers were constructed, and about 600 of those units are still available, said Gail Lissner, managing director for Integra Realty Resources...

https://www.msn.com/en-us/money/real...5e225348&ei=15

[C.]

Originally Posted by DCReid

For the first time in years, there are no new large condo projects under construction in downtown Chicago.

Roughly 2,500 condos have been developed downtown since 2015 as multiple towers were constructed, and about 600 of those units are still available, said Gail Lissner, managing director for Integra Realty Resources...

https://www.msn.com/en-us/money/real...5e225348&ei=15

Not a big number. Toronto builds that many every two to three months.

[Steely Dan]

Yep.

Everything big is rental right now.

[Randomguy34]

Having everything be rentals helps prevent future NIMBYs, which allows for more construction in downtown

[Steely Dan]

Originally Posted by Randomguy34

Having everything be rentals helps prevent future NIMBYs, which allows for more construction in downtown

True. Highrise owners tend to be be WAY more invested, both literally and figuratively, than renters in keeping their surroundings the way they are (ie. throwing every complaint against the wall to try and stop development that might block "their" view).

[Crawford]

The funny thing is that NYC is the opposite. Since the idiots in Albany got rid of 421-A, making rental development virtually impossible, nothing is being built but condos.

Hopefully a legislative solution is imminent, in the next few days (they're wrapping up the budget, and supposedly there's a 421-A replacement).

[mhays]

Most Seattle projects are rentals too...most highrises and 99% of anything shorter. It's all about condo liability laws.

[Toasty Joe]

the article says since 2015 around 31,000 rental units have been built downtown, including Gold Coast, River North, South Loop and the West Loop

[The North One]

Didn't we have an exact post like this years ago?

[Steely Dan]

Originally Posted by The North One

Didn't we have an exact post like this years ago?

A quick title search of this sub-forum for "Chicago" and "condo" turned up nothing else, going back to 2007.

[Zapatan]

Man, I forget if Tribune East was condos or rentals but I hope it bounces back quick.

Although as mentioned I feel like we've heard this before, even before the last boom.

How are Toronto's demand / interest rates in such a better place?

Originally Posted by mhays

Most Seattle projects are rentals too...most highrises and 99% of anything shorter. It's all about condo liability laws.

Is 4/C also condos or Rentals?

[Steely Dan]

Originally Posted by Zapatan

Man, I forget if Tribune East was condos or rentals.

When we last left it, it was mainly rentals and hotel, with some condos (like 100 IIRC) at the very top.

But with those kinds of uses, the ratios could be shifted without too much difficulty, since it's nowhere near the construction document stage.

And it's not likely to be starting anytime soon, if ever.....

[WhipperSnapper]

As far as I know, Toronto's vacancy rate is a fraction of Chicago's. The Canadian standards for a balanced rental market has been an unhealthy 2 to 4% vacancy.

[mhays]

Seattle's 4/C site is for sale, so the concept is probably dead.

The last concept was a mix of condo and apartment, but I'd suspect any new concept would be all apartment.

[The North One]

Originally Posted by Steely Dan

A quick title search of this sub-forum for "Chicago" and "condo" turned up nothing else, going back to 2007.

Maybe somebody made it in a post and not a whole thread. I absolutely remember it being talked about here. Anyway yeah seems like this has been the case for awhile.

[Zapatan]

Originally Posted by Steely Dan

When we last left it, it was mainly rentals and hotel, with some condos (like 100 IIRC) at the very top.

But with those kinds of uses, the ratios could be shifted without too much difficulty, since it's nowhere near the construction document stage.

And it's not likely to be starting anytime soon, if ever.....

Thanks, I figured they could reconfigure if needed.

I really hope that's not true, even if they have to scale it back a bit.

Seattle's 4/C site is for sale, so the concept is probably dead.

The last concept was a mix of condo and apartment, but I'd suspect any new concept would be all apartment.

I was under the assumption that a new developer would build the current vision or something similar, if so, I guess they could also adjust usage.

[pdxtex]

High rise condos see awesome and scary. Like you almost have to let the building work out a few fiscal bug. Portland has some older 80s tower that are priced pretty well and have moderate hoa dues. However I could probably name at least 8 building from the last 15 years that were built with some kind of defect. Even right now we have two huge towers built within the last few years with inoperable hvac systems. Thats crazy. One bldg was quoted at 7 million for repairs. Fck that. I stick to my townhouse.

[Doady]

Originally Posted by mhays

Seattle's 4/C site is for sale, so the concept is probably dead.

The last concept was a mix of condo and apartment, but I'd suspect any new concept would be all apartment.

Most condos being built these days are apartments.

Originally Posted by pdxtex

High rise condos see awesome and scary. Like you almost have to let the building work out a few fiscal bug. Portland has some older 80s tower that are priced pretty well and have moderate hoa dues. However I could probably name at least 8 building from the last 15 years that were built with some kind of defect. Even right now we have two huge towers built within the last few years with inoperable hvac systems. Thats crazy. One bldg was quoted at 7 million for repairs. Fck that. I stick to my townhouse.

Condo townhouse or freehold townhouse?

[pdxtex]

Originally Posted by Doady

Most condos being built these days are apartments.



Condo townhouse or freehold townhouse?

Freehold I guess. I own the taxlot, all 30 x 60 ft! We do have an hoa but its mostly for landscaping and a reserve for communal stuff like gutters or roof repairs otherwise all repairs are on you. As my first foray into homeownership its been pretty good. The market is kind of flat for stuff like this but thats ok. Id still live in a big tower but I'd go thru their books pretty well before I pulled the trigger.

[Doady]

Originally Posted by pdxtex

Freehold I guess. I own the taxlot, all 30 x 60 ft! We do have an hoa but its mostly for landscaping and a reserve for communal stuff like gutters or roof repairs otherwise all repairs are on you.

Ah, if there is communal maintenance then it is condominium. My mom's townhouse is freehold, so landscaping and maintenance is her responsibility, no monthly maintenance fee. The street and sidewalks are all municipally owned as well. It's like a semi-detached house because her unit is an end unit. It's about 8m wide, 32m deep, if you don't count the munipical-owned part of the street (aka. the "boulevard"), which is around 25 x 100ft if I am not mistaken.

There is a lot of potential for increased density even without high rises. People talk about condo owners caring too much their neighbourhoods, but is it really good to have a neighbourhood full of people who don't care (i.e. renters)? Sometimes a balance is needed: condo vs. rental units, townhouses vs. apartments, high-rise vs. mid-rise vs. low-rise.

Chicago used to have 3.5 million people, now it has 2.7 million? I'm not sure many more high-rise residential buildings need to be built there.