CAN YOU SPELL "ASSUME"?

Implications: Mr. Burns makes two assumption errors in what is otherwise an outstanding analysis regarding the "near-future" of condominium development. His assumption regarding  attitudes towards HOA's is incorrect ... as is his statement that the Hi-Rise condo market in Las Vegas will succumb to the current economic environment. 

Analysis:     The resistance to HOA's which Mr. Burns assumes in his analysis is a function of both location AND  psychographics.  There is, indeed, a portion of the homebuying community that is adamantly opposed to living in any community with an HOA.  Those buyers are defined not by demographics, but by psychographics.  Such buyers exist in greater numbers  on the east coast of the US than on the west coast.  Moreover, research by Marketing Solutions in the Las Vegas, Phoenix and Southern California markets shows that the the vast bulk of those who are shopping for product  have accepted HOA's  as part of their lifestyle.   
    Mr. Burns is absolutely correct that the investor market is now no longer a factor in the demand for condominiums and conversions -- outside of Las Vegas.  Foreign investors (because of the dollar decline) and second home buyers are still a very strong component in the marketing mix for Las Vegas condominium products (other than conversions).  Moreover, the trend to urbanization -- which is found in both inner cities and in suburbia -- is fueled by changing demography.  Simply stated, we've got to stop building for the family market -- which no longer exists.
    Vertical product -- hi-rise and mid-rise communities -- accounts for nearly one in four closings.  Las Vegas is on its way to becoming an urban rather than a suburban market.