[RP TownTalk] condo's vs apartments

[David Michailof]

I ran across an interesting article in the USA Today
that may be relevant to the discussions about the
patriot group proposal:

New condos could become apartments as sales cool 

By Noelle Knox, USA TODAY


There's relief in sight for some renters as the
oven-hot real estate markets cool: A huge number of
new condos could be converted to rental properties
over the next 18 months.

In Las Vegas, Phoenix, San Diego, Washington, D.C.,
and much of Florida, an estimated 25% to 40% of condos
under development or apartments that were converted
into condos for sale will be put back on the market as
rentals, says Marcus & Millichap, an investment
brokerage firm.

TROUBLE IN PROVIDENCE, TOO: Foreclosure notices
increase.

During the real estate frenzy, thousands of apartment
renters were forced out by landlords who converted
their units into condos for sale. Last year, about
200,000 apartments were sold for conversion to
condominiums, on top of 135,000 new condos.

In Scottsdale, Ariz., condo conversions eliminated 15%
of rental units. Vacancy rates were squeezed by the
rising number of people who couldn't afford the
escalating home prices.

As renters in sizzling markets have scrambled for
anything available, rents have surged. In the
Miami-Fort Lauderdale area, "Not only are rental
prices up 12% to 15% in the second quarter, but the
number of people signing leases is up 23% over last
year," says Ron Shuffield of Esslinger-Wooten-Maxwell
Realtors.

In recent months, though, the inventory of condos for
sale has swelled. And buyers have vanished. Developers
are turning condo projects into apartments or
canceling them. Some landlords are inviting back
tenants because they can't sell the units.

Not all renters will get a break. In Seattle,
Philadelphia, Los Angeles and Portland, Ore., there's
still a supply-demand balance for condos, Marcus &
Millichap says.

But the "reconversion" trend is accelerating. In
Atlanta, Lane Co. is all but abandoning condo
development. Two of its current projects are now
destined to be apartments.

 


__________________________________________________
Do You Yahoo!?
Tired of spam?  Yahoo! Mail has the best spam protection around 
http://mail.yahoo.com