We keep hearing reports that the demand for new homes is cooling slightly, although it’s too early to back that claim with any hard data. Developers are showing no signs of slowing down, however.
Chicago builders are on track to add a record number of new-construction units to downtown Chicago in 2006. During the first half of 2006, developers added 4,400 new units downtown, almost matching the 4,500 units announced in all of 2005, says Gail Lissner of Appraisal Research Counselors. Yo counts 55 high-rises in various stages of marketing and construction in the downtown market, and we know of a few more coming down the pipeline.
Perhaps we’ll see a repeat of what happened in 2002, the last time the market was fairly crowded. Back then, banks stopped handing out construction loans until buyers absorbed the existing product.