Is the Downtown Living Initiative a Mistake?
Has the Downtown Living Initiative encouraged overbuilding? The Wall Street Journal broke down the program, which abates property taxes over 15 years. It's more than halfway through its term (it expires mid-2016, or when it’s incentivized 5,000 units). More than 4,200 units have been announced, which would triple our Downtown population.
The first participating property, SkyHouse Houston, has delivered (we snapped its groundbreaking, above) is beating its pro forma so far—it opened this summer and is 45% leased, with one-bedroom units going for $1,650 and higher, the WSJ reports. But with oil prices dropping and a potential economic dip coming, will proceeding properties do as well?