Chicago's Downturn in Real Estate

I've been in Chicago the last few days.   This is definitely one of the most impressive and enjoyable cities in the world.    The architecture alone is worth a visit and the people are terrific.

The city has experienced a boom in real estate the last few years.    There are many impressive new buildings dotting the skyline.   But if one type of building permit is a good indicator, that growth is going to slow dramatically next year.

I was chatting with one of the foreman of a large construction project near my hotel.    I remarked about a few buildings that are half-completed on which I noticed no work was being performed Thursday or Friday, both beautiful, sunny days.  The foreman noted that he hadn't seen work being done on them in weeks and that it was clear there was some kind of problem, likely with funding.

He then told me that the city's crane inspector had recently been on his site.   They got to chatting, and he noted that were are currently 35 large-building cranes in use in Chicago.    I can see about 10 of them from my hotel.

The inspector told him that there were currently only 5 permits for these types of cranes for next year.   While more crane permits could be submitted and approved at any time, it's still going to be a steep drop from current levels.   There were be fewer large buildings going up in Chicago in the next year or two.