"During the past few years the city has committed hundreds of millions – $300 million in South Waterfront alone – to encouraging various condo developments around town. The idea, of course, was that this money would be paid back from taxes on the condos.
So what’s going to happen now that the condos aren’t selling?
As should come as a comfort to no one, there is a considerable difference of opinion on that score.
Two months ago, The Oregonian ran a news story on the downturn in the condo market saying there are about 1,300 condos on the market. As they saw it, however, that wasn’t going to be a problem because if condos continued to sell at a rate of 800 a year, the backlog would be erased in 18 months or so.
This week, the Portland Business Journal upped the unsold condo figure to 2,500. Even then, the article went on to predict, there could be a “condo shortage” in two or three years.
The current issue of Brainstorm Northwest, a conservative business magazine, places the figure at closer to 7,500 and says that the backlog of unsold condos might well last a decade.
P-town, we’ve got a problem."
Ya think?
