Chicago Area New Construction Spending Surges in 2016 (for sale, 2015)

[IrishIllini]

Report: Chicago area new construction spending surges in 2016 - Curbed Chicago

We've lagged behind for much of the past decade, but great to see us pulling ahead here. Any thoughts on how it impacts the RE market and population growth? Inventory has slipped quite a bit in the City YOY. I'm sure the overwhelming majority of this construction (if not all) is targeting high end buyers.

[Vlajos]

That's some impressive increase in construction. Not sure what it means in terms of population totals, my guess is not much. The city is likely continuing to bring in high earners while losing lower income earners. The net effect is likely not much of a population change.

[IrishIllini]

Originally Posted by Vlajos

That's some impressive increase in construction. Not sure what it means in terms of population totals, my guess is not much. The city is likely continuing to bring in high earners while losing lower income earners. The net effect is likely not much of a population change.

Yeah, we're probably still bleeding residents on the far west and south sides. Hopefully the construction continues and we can start seeing modest to sizable increases. 2020 will probably be a small bump or drop in either direction for the City. If the construction continues, 2030 has potential for legitimate gains in the City.

[beaniemac]

this would be good if almost all new construction and resources weren't concentrated downtown, west loop and on the north side.

[IrishIllini]

Originally Posted by beaniemac

this would be good if almost all new construction and resources weren't concentrated downtown, west loop and on the north side.

I agree it would be nice to see the further reaches of the west and south sides see some love, but it'll take time. At some point people will make their ways west and south and the construction will follow. Hopefully the unusually low inventory of homes for sale and climbing rents will push people out that way sooner.

[beaniemac]

Originally Posted by IrishIllini

I agree it would be nice to see the further reaches of the west and south sides see some love, but it'll take time. At some point people will make their ways west and south and the construction will follow. Hopefully the unusually low inventory of homes for sale and climbing rents will push people out that way sooner.

I hope you're right. there are so many nice areas in the city that aren't on the north side and downtown. just wish they would get more resources pumped into those areas.

for instance, I was outside running while my daughter was in her cheerleading class last night and I ran through historic pullman. really nice quiet diverse area. and despite them not having L service, it wasn't until the last few years that they even got a grocery store in walmart over there.

[chet everett]

I'm somewhat surprised that the percentage increase is so large though given the dearth of activity in 2015. Deep pit to crawl out of!

The chain of dominoes that gets set in motion by highrises continuing to chase a luxury market is going to mean that folks trying to sell or rent condos / apartments that even a bit less "high style" are going to mean discounts for existing units.

Given the notorious discounts that Mike Madigan's law firm wrangles for high rise owners there probably won't be much positive effects on the massive budget deficiets that CPS and City of Chicago is facing -- it'd be great if voters woke-up to the cruel insider games and tossed the old guard out, but there is not much chance of such a change!

[IrishIllini]

Originally Posted by chet everett

I'm somewhat surprised that the percentage increase is so large though given the dearth of activity in 2015. Deep pit to crawl out of!

The chain of dominoes that gets set in motion by highrises continuing to chase a luxury market is going to mean that folks trying to sell or rent condos / apartments that even a bit less "high style" are going to mean discounts for existing units.

Given the notorious discounts that Mike Madigan's law firm wrangles for high rise owners there probably won't be much positive effects on the massive budget deficiets that CPS and City of Chicago is facing -- it'd be great if voters woke-up to the cruel insider games and tossed the old guard out, but there is not much chance of such a change!

Yeah, Madigan is a crook, but his base doesn't care. He's 74 and I can't see him being in the picture much longer. Who knows how much more damage he can inflict before he retires though...Seriously sickening how a few thousand people have the ability to negatively impact nearly 13,000,000...