There s been a tremendous amount of projects beginning downtown, and a lot that were announced in 99 are building now. Earlier in the decade, the city saw a spate of relatively affordable condo conversions, but virtually no new construction of luxury highrises. The answers are not simple, but one of the biggest and most obvious is the national economy. An unprecedented span of economic growth and a runaway stock market have put a lot of cash in the pockets of a lot of home buyers. Many of these same buyers have built up significant equity in their current homes and have good leverage to trade up to luxury highrises in a hot real estate market.
Demographics also favor the new buildings.
As well-off baby boomers become empty nesters, developers say, many are looking to simplify their lives and return to the excitement of living in downtown Chicago. In the U.S., someone is turning 50 something like every eight seconds, says Herb Emmerman, of Equity Marketing Services, which is marketing the Fordham, among other new developments. That translates into a very large and growing market for people who are building this kind of product. Developers say that empty nesters have been a significant part of the luxury market. To justify those costs and entice buyers who now have a number of buildings from which to choose, developers are offering an unprecedented level of services and amenities.