A recent article published in nationwide news outlets suggest that America will soon begin to see a slump in Luxurt Apartments being built. The Importance of this issue regarding St. Louis is our growth. Toward the end of last year (October- December), St. Louis saw a tremendous increase in Luxury Apartments proposals across the region. Many of them in the City. Some are being built and many are scheduled to begin this year or early next year. But does this nationwide trend effect us at all?
The answer lies into whether or not we have been growing at the same rate as the rest of the country. We haven't. In fact, we have been well below the national average in new construction up until March 2016. This slump has prevented us from overbuilding like the rest of the country. This in turn has led to proposals like Ballpark Village Phase 2 being proposed and One-Hundred North Kingshighway.
These 2 projects prove that we are just beginning to emerge from the recession of 2008-2009. This event is why we are beginning to see proposals that will lift us higher than the rest of the nation. Unfortunately though, we too will begin to slump once again and not build as much as we should. The reasoning behind this is very clear, less than 2 weeks into 2017, the Mayoral Race is heating up on the sole issue of City backed bonds for projects. Because of this issue and the debates to whether or not back the projects, has caused developers to lose hope in some of their projects that they have proposed. Some could remove their projects from the development board.
The biggest debate is whether or not the Solcottrade Center, which is backed by City Bonds, will even have its renovations. If it does get more bonds from the city, developers will become angry and a Government issue could arise that stalls TIF (Tax Increment Financing) funding for projects in the City causing a citywide stall in construction.
But there is also a flip side, the city funding projects could also help draw attention to the city. This attention would grab more developers and pull them in to propose things this year that are big and transformational. In doing so, the city will be able to stop funding the projects and instead give developers tax breaks to get things done like in many major American Cities. Depending on who the next Mayor will be, we are looking at a Government who will continue to fund projects that could be good or bad. And as we continue to do this, a massive wave of developers will join in.
We won't really know whether or not we will begin to slow in growth to excel in growth until the Fall when a late Majority of projects get underway. Those projects are as listed...
- The Next NGA West
- Ballpark Village Phase 2
- One Hundred North Kingshighway
- CORTEX Phase 3
- Queeny Tower Reconstruction
- Centene Phase 2
- The Armory
- Scottrade Center Renovation- Possibly
- The Jefferson Arms Project
- TOTALING NEARLY $2.8 Billion in Development by 2019.
As for Clayton though, they are going to begin to see their slump in development since many of their Residential projects are not being realized since they have been with the rest of the nation in terms of development. And Centenes Drastic Expansion will really overbuild Clayton and leave them with the burden of more abandoned space as the rest of the region continues to grow. But we shall see.