Wednesday, December 12, 2018

TKC BREAKING NEWS!!! INSIDER WARNING: KANSAS CITY SPECULATIVE HOUSING BUBBLE READY TO BURST 2019!!!



So much irrational exuberance over the taxpayer subsidized Downtown Kansas City building boom has run its course and now local financial leaders are mostly unprepared to cope with the inevitable aftermath.

To wit . . .

THE KANSAS CITY HOUSING BUBBLE BURST!!! NOW LOCALS SCRAMBLE TO SELL OVERPRICED REAL ESTATE TO SUCKERS SHOWING UP AFTER THE PARTY IS OVER!!!

The consequences of the slowdown are mostly beneficial for people already settled in homes but the financial implications are far reaching.

A quick overview . . . 

- No More Cheap Money For Kansas City Developers

Activists and politicos would like to take credit for fewer developers asking City Hall for tax breaks and benefits but again and again we remind locals that NOTHING is more powerful than MARKET FORCES and the decline in demand for $1500-per-month rent just to be closer to the toy train wasn't hard to see coming . . .

- KC Job Market Just Got Worse For The Middle-Class

Sadly, the busted American Housing Bubble Part II has negative consequences for every sector of the economy so expect fewer of those sketchy marketing jobs which have powered the career ambitions of local creative class.

- Kansas City Homeless Crisis Just Getting Started

And here's where things get really rough . . .

Already we've seen a housing crisis for lower-income Kansas City residents but now another market slow down means fewer for places for po'folk to live overall and, tragically, more people forced on the streets as this town is already struggling to cope with the largest population of local hobos we've witnessed in a decades.

And all of this brings us to our KICK-ASS TKC INSIDER quote which inspired this collection of info . . .

"The end of the housing boom for Kansas City would have been nice if it happened 3 years ago. Now what we're left with a is a glut of properties that aren't going to be attractive during an economic pull back. Crafting downtown development solely on luxury real estate was a bad idea and now we're watching the deescalation do significant damage to so many of the businesses catering to the monied crowd. Yes, TKC, it's not a great time to own an artisan cookie shop or so many of these luxury services that made substantial progress over the past few years but haven't endured anything close to a recession already underway."

Further reading:

Seeking Alpha: The Housing Bubble Is Popping Right Now

WSJ: Housing Slowdown Unnerves the Fix-and-Flip Crowd 

Forbes: How The Headlines Could Cause A Housing Market Crash

The Hill: Fannie and Freddie investors want us to forget about the housing crisis

KC Biz Journal: Kansas City's trendiest neighborhoods have the highest multifamily vacancy

Developing . . .

24 comments:

Anonymous said...

the kc real estate game has always been questionable. They still want to make the west bottoms a thing which always happens every 10 years. The national economic slowdown is part of the regular cycle, just too bad so many great Kc properties have been auctioned off to the highest dickhead bidder.

Anonymous said...

So you're saying there won't be a KC 4, 5 or 6 light.

This is probably a good thing!

Coppertone said...

What sucks about all of the downtown speculation is the ripple effect into other neighborhoods. Real estate prices are up all over KC and that makes the cost of living increase everywhere. One of the benefits for people to move to KC was go get a break on rent, that's really not the case any longer.

Anonymous said...

You mean that free "Learn how to Flip houses" conference I attended a few months ago and bought their $1200 secret book on is worthless to me now? Sonuvabitch!!!

Anonymous said...

Where’s gopher boi with his moving forward with momentum or will he come on here calling everybody haters? You make the call! Hahahahaha!

Anonymous said...


I did a a fix and flip in Hyde Park and sold my property to some idiot liberals for 50k over appraisal.

Anonymous said...

I guess this means all you millennial neckbeards will have to continue your stay in Mom's basement. You chances of ever kissing a girl have declined also. So retreat to your virtual friends on Facebook and fire up the PS4, this is your world now.

Anonymous said...

Keywords, @9:57, are "I did" - past tense.

Ponzi's first few rounds of "investors" made a few bucks profit too.
Hell, a few people other than "himself" have made money off of Trump's Real Estate disasters!

I sold a $15k "starter house for over $85k in 2004, then bought it back for $65k and re-sold it for $72k in a year.

Wouldn't touch Real Estate for the next four or five years, though - that ship has sailed! Sticking with Fed Bonds, thank you very much.

Anonymous said...

You could slap together a cheap sub par $200K build (materials) with cheap labor and get $800K for it a few years ago around here. Looks like we are running out of greater fools at this point.

Anonymous said...

These the same TKC insiders who are wrong about everything else?

Think I'll buy.

Anonymous said...

^^You are correct! Those kick-ass TKC insiders nonetheless! I'm buying too!

Retro ROCKER said...

Leaving KANSAS CITY. THERE ARE TENS OF THOUSANDS OF PEOPLE THAT DRIVE THIRTY PLUS MILES ONE WAY TO WORK IN THE METRO. IN THERE SMALL TOWNS THERE ARE FEWER CRIMINALS AND THE COST OF LIVING IS LESS. AND A SATURDAY NIGHT BARN BURNER FOR INTERTAINMENT. THE BAND ROCKS THE HOUSE OR THE BARN

Anonymous said...

West bottoms. U can not bring up west bottoms without bringing up turkey creek and i35 i70 i70 i 35 alt abcd and all those bridges that the homeless keep burning. Odd.

Anonymous said...

Doesn't look like any of these articles actually support the thesis. The "downturn" seems to be more that the exponential growth of the last five years isn't still occurring. That is to say, that real estate prices are leveling off...not regressing.

It's going to be hard for there to be another "housing crises" from a decade ago because there is still limited construction of new houses, especially in KC. Nearly all of the new construction here is on multi families so single family inventory is relatively stable and unchanged.

East side, raytown, independence, etc are still incredibly affordable for low income. Big houses are like $30,000, which on a 30 year mortgage is what...like $200 or less a month.

Anonymous said...

Yeah right,

Copy and paste article from 6 years ago....

Anonymous said...

^^^^^^ The real estate market did dip 6 years ago. You just don't know about it because you're broke.

Anonymous said...

Hey $1500 a month for a streetcar apartment. that's a great investment!

Hot pieces love to give it up when they see an expensive view.

It's the cost of doing business baby!

Anonymous said...

I hope this doesn't turn out to be correct, I think the markets will recover after Trump is impeached and removed.

Anonymous said...

Retro rocker- Do you EVER check your spelling????? Every post you place is full of poor grammar and spelling. Reflect upon the quality of your opinions.

There
Intertainment
All caps
Too few periods

Anonymous said...

^^Don't forget "intertaiment" as well. The guy is a retard.

Anonymous said...

Bums ("hobos" in TKC parlance) are not homeless because the cost of an apartment is too high. They are without reliable overnight inside accommodation because they prefer that to regular employment.

Anonymous said...

Does this mean downtown will turn into a ghost town again?

Anonymous said...

Blame Trump.

Anonymous said...

the downturn is inevitable. At least it saved us another one of those stupid "light" buildights that are all glass and aluminum.