” The developer, San Diego-based Affirmed Housing, got the land at the bargain-basement price of $4.4 million, or $202 a square foot. The current per-square-foot average is $250; the average was $350 during the market heyday two years ago, said one real estate economist. ”
42% decline on the price of land.
So who said that land will only go up?? Building costs are down, land prices are down, home prices are down.
Of course the developers who bought at the top will eventually have to sell below cost of land and construction. But the developers who can get relative bargains will make money.
CCDC is finally realizing that there WON’T be 70,000 people living downtown unless they import a bunch of low-income people
Very interesting economic model for the downtown of a major US city:
When it gets to the point that nobody can afford (or banks aren’t lending on) all the over-priced condos that you allowed (encouraged? partially funded with taxpayer money?) to be built in your downtown area, buy them all up with taxpayer money and turn them into government-subsidized housing projects for low-income people
Don’t worry about the degradation of neighborhoods that often comes with subsidized housing – when the people who bought downtown for market value move out in disgust (or fear of their lives) you can buy their property at a discount and turn it into subsidized housing too
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