DECEMBER 2007: FORUM
Is resort building out of control?
Your publication had a story [ANOTHER RESORT ON TAP
FOR CENTRAL OREGON, OCTOBER] on destination resorts in
which industry advocate Linda Swearingen informed the magazine
that she believes the market for resorts in Central Oregon has
yet to peak. “You don’t come in on a wing and a
prayer to develop these resorts,” she stated, suggesting
that the continued pursuit of land use approvals for
destination resorts is evidence of true long-term demand.
We have our doubts. No one even knows if all the lots being
approved in resorts are going to sell. Although lots sales
remain strong for now, home construction is lagging
considerably behind as many owners begin to question their
investments. Is the market going to hold up? Is the region
over-built? And will long-term supply actually be there once
baby boomers go to sell? It’s hard to say anyone has any
real answers to these questions, but concern is certainly
mounting.
It’s useful to note that resorts make the bulk of their
money on lot sales. It doesn’t take many lots before the
developers find themselves in the “windfall”
category. Is it possible that there is a mad rush for resorts
because each development wants to get its lots sold before the
market reveals its cracks?
Whatever the case, it’s disappointing that the major
limitation to this industry seems to be speculative demand for
lots, not overall impacts to Central Oregon and its
residents.
Erik Kancler
Executive director,
Central Oregon Land Watch
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