As USA Today reported, the recent cooling of the real estate market nationwide is causing the the buyers of condos to dry up. Coupling that with the trend of converting multi-family housing to condos (which I see is still a hot trend in the Richmond market), there is a glut of condos available.
This is having two directly observable results:
- Rents are rising as the supply of rental units shrinks due to conversions to condos, and the demand for rentals increases as mortgage rates rise.
- Some developers are noticing the first result, and converting their condo buildings back to rental units.