It’s a short article, but it’s just reaffirming my comments about the effect of the over-building of condo units and the condo conversion trend that has been so popular.  Good news for the rest of us, though!

Link: REALTOR Magazine – Daily News.

There is "clearly an oversupply" of unsold condo units, NAHB Chief Economist David Seiders says. Vacancy rates for apartment buildings are dropping and rents are increasing, he says.

(see also Condos reverting to apartments, Stronger Market for Apartment Investors, & New Hilton Hotel redevelopment of Miller & Rhoads)

One Thought on “More about Condos vs. Apts”

  • Sounds like it will be a great rental market, at least until all those condo owners and developers get smart and switch back to renting. It may take more time for that to happen than many people think, however. Some condos may have restrictions on a building mixing rented and sold units. Also, the rental market will have to actually hit a strong level before the mathematics work in the favor of developers to switch units over to rentals. As such, even if the growth trend may slow when condos swing back over to apartments, it has some solid growth in store before arriving at that point.

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