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."
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 . . .