Quote:
Originally Posted by jmecklenborg
A mixed-use project (hotel + office + apartments + street level retail) almost never happens outside the biggest cities because it's difficult to get the construction loan. Why is it difficult to get the construction loan? Because it's tough to offload pieces of the project should the market shift during the 2-3 year construction period.
|
Yes, this is why cities with high land values are able to pump out these developments with ease, while cities with low land values struggle to do it. But my comments were about the mid-century shift from city to suburb. The early government backed lending programs made decline inevitable because families could not borrow money AND stay in the city once the city was all built out. The solution that some states enacted that benefited cities was to make it harder to develop single-family housing.