Real estate analysts who predicted a boom in condos are now hiding behind 'construction costs.' "The glossy brochures promised rooftop gardens and posh European spas. The Las Vegas Strip and billions of dollars of hedonism just past your uniformed doorman. Such is the stuff of high-rise living in the imagined vertical Las Vegas."

"By most accounts, the skyrocketing costs of materials and labor have toppled some high-profile luxury condominium projects, turning the market skittish. At least six projects have publicly folded or stalled in a little more than a year, a fraction of the more than 100 once proposed, but enough to make some real estate watchers declare a bust to the boom."

"'What we're having here isn't a demand constraint,' real estate analyst Richard Lee said of the failed projects. 'The No. 1 problem is construction costs and lack of skilled labor.'"

"On prime pieces of land across central Phoenix, Scottsdale, Tempe and recently even in the bedroom communities of Mesa and Ahwatukee, signs are going up promoting upscale condominium towers and lofts. But at many sites, those signs will be the only things erected for a while. Maybe ever."

"Almost 8,000 condos and lofts are planned or under construction across metropolitan Phoenix, more than what went up in the Valley in all of the past 10 years. Many investors who bought units in the first wave of high-rises now are trying to sell.Last year, more than 10,000 apartments across metropolitan Phoenix were turned into condos or bought by investors."

"At the end of February, 18 of the 90 condos in the Orpheum Lofts were on the market. The historic art deco tower in downtown Phoenix sold out, and now many of the original buyers are turning out to be investors trying to sell. 'Condo developers are now competing against speculators,' said Jay Butler"

"Robert Sheridan, a veteran national condo converter who is developing a project in Scottsdale and also leading a fund to buy failed condo-conversion projects on the East and West Coasts, said the conversion craze is over. Though his company converted the Las Brisas apartments in north central Phoenix a few years ago, Sheridan said he wouldn't do another one in central Phoenix because there are too many in the area. 'Only the condos in the best locations will sell now,' he said."

"Las Vegas, southern Florida and San Diego have seen the most new high-rise and condo development during the past two years, and now these markets are facing the biggest overbuilding problems, real estate analysts say. Early projects sold out quickly, and prices jumped with each subsequent phase. Developers then rushed in with new designs, tied up prime pieces of land and began taking 'presales' to test how deep the demand was for vertical living."

"In San Diego, condo prices are falling because of the number of resales put on the market by early speculators. Some developers also are putting new projects on hold. There are about 6,200 condos for sale, double from a year ago. Already in San Diego, some condo-conversion projects are falling through."

"In Las Vegas, high-profile high-rise projects that are nearly sold out are being taken off the drawing board. The Icon Las Vegas tower is the latest casualty of the condo glut in Sin City. In Miami, more than 15,000 condos are under construction and another 60,000 are planned. To attract buyers, some developers are offering freebies like plasma TVs."

"The condo-conversion market is untested in the Valley. Market watchers and owners of these former apartments are waiting to see if values climb enough to let them sell for a profit after a few years. For those who don't yet own, though, the number of condos on the market may be disconcerting."

"Real estate agents say some investors are now beginning to walk away, or are considering doing so, from small deposits on high-rise and condo-conversion projects in the Valley. Other potential buyers are concerned a glut of new condos will put pressure on prices and don't want to buy until the market stabilizes."

"Most projects without 'real buyers' and government approvals aren't getting financing: Lenders are clamping down on condo deals because of the many speculative projects and gluts in some areas. 'Now most lenders are very cautious and want most of a development to be sold, really sold, before they will finance it,' said (developer) Eric Brown. 'There's demand for urban housing projects in the Valley, but only a few projects really make sense,' he said."