I can't believe all of the new construction!

jlw61

I went to Richmond this weekend and spent some time wondering around between my errands. I can not believe all of the new construction in the area!

A brand new heart center, four stories and nothing but glass on top of a small hill overlooking the highway. Huge animated fountain down near the road to greet everyone. Lots of other buildings going up around it.

Out by the airport they are building hotels and adding on to the airport like they expect a lot of new air traffic next week. Near the airport, one of the big-box craft stores lost their lease because the property is going to be used to build another hotel.

One of the local in-town Holiday Inns is upgrading and from the looks of the materials they are using, they are doing it in a serious way.

The "west end" is still building McMansions, though it doesn't seem to be as many or as pricey.

I'm dazed and confused as to what these people are thinking. Does a hospital make that much profit that they can expect a payback in less than 3-5 years? Or a hotel?
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3aidlillahi · Intermediate Crude Joined: Mar 25, 2008 Posts: 550

The high oil prices are really shifting money from the lower and middle classes to the upper class. There is still plenty of money abound for the wealthy, just not for the average person. Rich people can travel, can get heart care, etc. As you note, these are all upper class constructions. Don't expect any low-income housing developments anytime soon*.

So I'm not surprised at all by any new construction, at least in the current timeframe. It will eventually become cost prohibitive in a 5-10 year time span.

* I'm not including the FEMA camps as low-income housing. Although, they may try to sell it to the public as such in a few years. For many, it'd be better than nothing.
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DoomWarrior · Heavy Crude Joined: May 06, 2008 Posts: 206

taizee · Tar Sands Joined: Jun 22, 2008 Posts: 52

Heineken

I wouldn't read too much into it.

Richmond had an oversized boom and is still going on momentum.

Richmond/Petersburg is quite spread-out and is thus very vulnerable to high gasoline prices. The public transportation system seems poor, although I'm not an authority on it. Just busses.

Local governments in Virginia, including the Richmond one, are starting to feel the pinch. This has been "in the news" lately.
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misterno

contruction in the North American cities is miniscule, compared to the ones in Asia and particularlary Turkey which I have seen the pictures on the net. People are buying houses like there is no tomorrow. There were 28 shopping malls built in Istanbul in the last 5 years. Unbelievable.

Just to remind you, price of gas in Istanbul is $11/gal and people make far less than Americans. Yet economy is booming.

Go figure

3aidlillahi · Intermediate Crude Joined: Mar 25, 2008 Posts: 550

Are you Turkish Misterno? Just wondering

What's driving Turkey's boom?
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Riches are not from abundance of worldly goods, but from a contented mind.

Fiddlerdave · Heavy Crude Joined: Mar 18, 2007 Posts: 267

Orders for super-luxury yachts are booming too.

But let us not be negative , everything presents opportunity! Perhaps our elderly can supplement their inflation-eroded pensions by hanging around these yachts in rowboats on party night and collecting the empty bottles tossed overboard.

hope_full · Heavy Crude Joined: May 27, 2008 Posts: 173

smallpoxgirl · Moderator Joined: Nov 08, 2004 Posts: 5161