Condo Projects On Hold, Cancelled Nationwide

Nationwide, developers are nixing or delaying condominium projects as homes sales slow, construction costs soar and lenders start to balk at financing units that might not sell. What's making it worse is the glut of high-priced condos and too few people who can afford them.

In Las Vegas, projects nixed include high-profile developments such as Aqua Blue, a $600 million, 825-unit luxury condo-hotel resort that counted Michael Jordan as an investor; the $3 billion, 4,400-unit Las Ramblas, backed by George Clooney; and Ivan Las Vegas, a $700 million, 945-unit tower named after Donald Trump's ex-wife.

Other markets at risk include Boston, San Diego, Las Vegas, Seattle, Chicago, Orlando, Washington DC, Manhattan and South Florida. A big part of the problem is that many condo projects are priced high-end, in most part because developers paid high prices for the land, but most buyers cannot afford the prices.

"The sweet spot of the market is probably $250,000 to $700,000", said Philadelphia condo king Allan Domb. " That's what the majority of the population can afford. Many condos are priced higher. That's part of the problem." More...