Industry News

Who gets hurt in a real estate downturn

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: Signs of a slowing real estate market raise questions about who in the industry will be most vulnerable to a housing recession. Fewer real estate transactions means there is less money to spread around, and that will impact everyone. But some will be hit harder than others – especially if they are not prepared. In this special series, we examine who's most at risk. (See Part 2: Newbie real estate agents bet on survival and Part 3: 'Exotic' home loans put lenders at risk.) Condo mania may be a bipolar phenomenon: The high-rise luxury condo building frenzy appears to be running out of steam in some markets, say real estate experts. There are risks of oversupply in parts of South Florida and Las Vegas, in particular, said Jack McCabe, CEO of McCabe Research and Consulting LLC in Deerfield Beach, Fla., and there is less appetite among lenders to finance high-rise condo developments. Condo developers could get hit much harder than other types of developers becaus...