| The market that in many ways began downtown KC’s resurgence has leveled out a bit, but housing remains healthy overall. The much-discussed mortgage crisis has certainly impacted the downtown housing market, the most visible effect of which may be in the area’s condominiums where there’s been up to a 30 percent drop in units sold this year. That number may not be as dire as it appears, however, because so many units have come online in recent months that some market over saturation was likely. Downtown is also benefiting from a massive demographic trend that in the long run will likely overcome temporary market issues. Young singles or couples, and older empty nesters are both growing segments of the population that favor what downtown offers in housing options. These groups are expected to produce a steady demand for downtown residential units. More than $170 million in residential construction was completed in 2006, followed by $80 million in 2007. Another $80 million was planned or announced for immediate development and some $750 million in residential development was wending its way through design stages. These included nearly 800 units under construction and 2,600 planned. Several of these projects are quite impressive. Nearly 300 con-dos are under way as part of the Power and Light Entertainment District. The Cold Storage Building alone will bring more than 200 units to the River Market. Several smaller projects include the 1728 Homes project and the Abdiana Building. Other new projects include the Piper, Argyle and Window lofts. Combined, nearly 2,000 rental and for-sale units were either under construction or recently completed at year’s end. Even more dramatically, more than 3,500 residential units were proposed or moving through approval process. These included extension of existing projects such as the successful 29 Gillham Row project and another 850 units as part of the entertainment district. Most are smaller projects, such as 12 units at the SoLo Lofts or five at 2004 Grand. One of the most interesting trends is the development of affordable housing units; projects that usually receive additional subsidies in order to provide more affordable lease rates. The Cold Storage building in River market, Graphic Arts Building at 934 Wyandotte and Argyle Building at 12th and McGee fall into this category. One of the most recent involves 24 rental units at 1740 Oak Street. Another 30 area requests for affordable housing funding assistance were before the Missouri Housing Development Commission. While not all are likely to be approved, they involve several hundred rental units in a price range many consider critical to ensure a diverse employee base. One of the largest residential projects is the East Village, a proposal for nine blocks east of City Hall that has been slowly moving toward a still undetermined launch date. While developers are still wrestling with issues such as a Federal office building, the plan continues to include a sizable residential footprint of at least 600 units, both for sale and lease. Even in a relatively slow market, projects are being planned beyond the downtown core as developers look for opportunities and under-utilized property. Al-though empty buildings still exist in Crossroads and other districts, projects such as Trinity Lutheran in Midtown illustrate that other areas will see development. The 18th & Vine Jazz District is another example of this trend. Although the area has not had the commercial success many hoped, residential development has been steady. One of the most recent includes an $11.2 million garden- and town-home development at 16th and Paseo. With 30 percent of the 59 rental units already leas-ed, the prospects look good.
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