High-end housing units account for 80 percent of all new construction, but prices are beginning to decline in some of the nation’s priciest markets, such as Miami, New York City, and San Francisco.
Forbes, via New Geography, reports that the high-rise residential boom is over. Cities are realizing that swanky multifamily complexes don’t aid housing affordability for middle-class residents. Millennials are also shifting to the suburbs, away from expensive urban cores.
High-density housing costs a lot of money to build, replaces older, more affordable housing, and raises the prices of homes in the general vicinity.
Other cities favored by luxury developers – like Vancouver, Toronto, Seattle and San Francisco – have also seen deteriorating affordability and, in some cases, a mass exodus of middle- and working-class residents, particularly minorities.
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