You Just Knew This Was Coming

by Alex Stenback on December 5, 2007

From the Strib:

A sudden downdraft in the housing market has cut deeply into revenues of a city that once was the fastest growing in the metro area.

While the quote above refers to Shakopee, and there has been nothing "sudden" about the housing market slowing (a slowdown has long been in the cards) this is a theme that will be replayed again and again as the real estate market unwinds. 

Cities, Counties, and the State all face declining revenues as dollars extracted from real estate related activities dwindle.

Expect a lot of coverage of this.  Also expect taxes to go up, spending to be reduced, or both.  Especially for those cities who were to heavily reliant on real estate driven revenues that they should have known would not last forever.
Housing Slump Echoes at City Halls [Strib]

{ 1 comment… read it below or add one }

PeterT December 5, 2007 at 5:09 pm

The ripples from this mess are going to be with us for a long time. Players throughout the economy, government and commercial, have made decisions based on this boom continuing. It is residential now, but the boom in commercial construction is still hot. As the economy slows down we are going to have more see through office buildings and syrip malls with no stores. These were looked at as big tax producers, too, so it will add to the problem.

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