Institutional Investors Watching Construction Levels Carefully to See How New Crop of Projects Affect Apartment Pricing
By Randyl Drummer
April 7, 2014
With apartment rents rising quickly in many markets and the single-family home market on the mend, the spreading housing recovery is reviving interest in the long-dormant condominium market. Although still a novelty in most markets, multiple large condo projects are under way in Boston, Washington, D.C., Chicago, especially New York City — and even in former housing bust markets such as South Florida and Phoenix.
While still well below historical construction levels, the new interest in condos is attracting interest from high level investors, who are keeping an eye on the growing condo construction and conversion market both to see if the trend may produce opportunities in more markets, and to gauge its effect on apartment property pricing.