As real estate cooled this year, teardowns plummeted by at least 20 percent nationally, roughly corresponding to the drop in housing starts, says Stephen Melman of the National Association of Home Builders.
That news was greeted with delight by preservationists, but few believe it will last.
The potential profits of teardowns simply are too attractive to dissuade developers to stay away for long, says Daniel McMillen, who heads the Center for Urban Real Estate at the University of Illinois at Chicago.
“I think some people might argue that the teardown market was a bubble and now that bubble has burst,” McMillen says. “But I don’t think that is the case. I think the teardown market will bounce back.”
Source: Associated Press, Michael Tarm (12/12/2006)
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