If the plan is to hold for a long time they probably won’t get burned. It’ll look pretty bad for a while on paper but the overall average will probably still increase as long as they don’t have to sell any time in the next 10 years or so.
I’ve had a lot of people tell me they would consider living downtown. I think there are some empty nesters who at least think they’d enjoy an urban lifestyle once their kids are out of the house. I think there is some demand here for that kind of lifestyle. I’ve just always been skeptical that there was sufficient demand to justify all those high “luxury” rises. There’s definitely demand for affordable housing so the units will sell if they’re priced right for that – but a bunch of people would have to lose a lot of money for that to happen.
