Carter Hendricks and his team for the South Western Kentucky Economic Development Council were greeted with unfortunate news earlier this week — when officials from Elevate Windows and Doors sent notice of a contract termination involving the planned purchase of the newly-completed speculation building in Hopkinsville.
In a statement Friday, Hendricks said the company was originally looking forward to coming to Christian County, but in recent quarterly discussions had chosen to re-evaluate business plans moving forward due to the estimated downturn in the nation’s housing market.
This slowing market, Hendricks said, was going to greatly depreciate the value of new windows and doors.
In the last week of September 2022, Governor Andy Beshear announced the arrival of this business — which had full-fledged plans to invest more than $16 million will creating 200-plus jobs for south western Kentucky.
This proposal also included the acquisition of an already-existing 100,000-square-foot building on 22 acres — a facility that was finished and showcased in the summer of 2022.
The hope was to push Elevate’s manufacturing and distribution footprint further into the southern portion of the US.
Production was expected to begin April this year.
Hendricks said the spec building is already “back on the market,” with conversations beginning toward other avenues.
In a recent analysis from U.S. News & World Report, the 2023 housing profile is expected to be one “filled with uncertainty,” with a “gradual shift in favor toward buyers.” More than 85% of homeowners in America pay mortgage rates below 5%, and two-thirds with rates under 4%. As interests continue their steady climb, home sales (and, thus, home building) will remain muted.
The report also noted that “more people will delay moving due to this ‘lock-in effect’ until [federal] rates retreat below 5%, or prices adjust accordingly.” And because local markets continue to be disproportionate from local incomes, now more than ever, price declines of 10% or more are expected — “particularly if employers are successful at bringing workers back to offices four or more days per week.”
If there is, indeed, a deep recession, U.S. News & World Report indicated that pricing declines in some previously high-flying markets — like housing, and rentals — could plummet 20% to 25%.
