The farther along in the development process a property is, the more money that’s been invested in it. After a certain point, a developer reaches the point of no return. They and their lenders have no choice but to follow through and hope the market recovers in the interim. It bears repeating that there are still a lot of developer-affiliated economists who are toeing the NAR line that the worst is behind us. A developer who’s listening to their economist might truly believe this downturn is over and we’re headed for better days.
Still, for every project that’s still in motion there are a couple others where the developers have already forfeited those land options that they could walk away from, and a number of other projects that were going to be built that are now on hold.
