America’s Cities Plunge into Catastrophic ‘Doom Loop’ as Crisis Spirals Out of Control!

Never before in the history of the United States have we seen an urban collapse as devastating as this. The pandemic forced millions of Americans to work from home, and many have yet to return to their offices. In addition, skyrocketing crime rates, homelessness, and migration have turned our inner cities into danger zones. Consequently, thousands of businesses have fled these urban cores in search of safer environments. This mass exodus has left a glut of commercial real estate unoccupied, causing prices to crash dramatically.

We are currently witnessing what could be the worst commercial real estate collapse in American history. Just recently, it was reported that commercial real estate foreclosures in March were 117 percent higher than during the same month in 2023.

The commercial real estate market is starting to buckle under the weight of higher interest rates and remote work.

There were 625 commercial real estate foreclosures in March, up 6% from February and 117% from the same time last year, according to a new report published by real estate data provider ATTOM.

The situation on the west coast is particularly dire. Cities like San Francisco and Los Angeles are facing immense challenges with commercial real estate foreclosures in California seeing a staggering 405 percent increase compared to the same month last year.

California had the highest number of commercial foreclosures in March, with 187 properties. While that marked an 8% decrease from the previous month, it is a stunning 405% jump from the previous year.

“California began experiencing a notable rise in commercial foreclosures in November 2023, surpassing 100 cases and continuing to escalate thereafter,” the report said.

However, it’s not just the west coast that’s suffering. Cities across the country are facing similar issues. St. Louis, once a thriving city during the time of the World Fair in 1904, now resembles a war zone. A vacant office building in downtown St. Louis recently sold for 98 percent less than its price in 2006.

A vacant office building in downtown St. Louis just sold for $3.6 million — a nearly 98% discount from its 2006 sales price, signaling a concerning course for the Midwestern city’s downtown area.

The former One AT&T Center, which at 44 stories is the third-tallest building in St. Louis, sold for $205 million in 2006 and recently sold for $3.6 million to the Goldman Group, a real-estate investment firm, according to CoStar News.

Downtown St. Louis has become a very dangerous place to live or work, leading to an increasing number of people wanting to leave. As things continue to worsen, more and more cities are falling into this “urban doom loop” where declining services and quality of life push residents out, exacerbating the issues further.

The cycle is often called the “urban doom loop,” which the Atlantic describes as the cycle of people moving away from city as things get worse, then things getting worse because more people moved away.

Business Insider’s Eliza Relman described the doom loop afflicting Midwestern cities: “Commercial property taxes make up a large chunk of many city budgets, so as office vacancies rise, the decreased revenue could force leaders to curtail municipal services or make cuts to key programs. Declining services and quality of life in turn pushes residents out, leading to a self-reinforcing exodus. Without serious changes, these midsize cities in the middle of the country could be quietly sliding into oblivion.”

This is a clear example of societal collapse. The moral fabric of our nation matters greatly and its steady decline over decades has led us to this point – a complete horror show. It’s time for change before it’s too late.

Source: Conservative Firing Line