Economy Watch: Apartment Absorption Outruns Construction
[{"id": "cq7xxh9", "text": "Anyone think there is a possibility some of the consumer demand shifts very quickly to condos and these start getting re purposed?  \n\nAm I too optimistic/ahead of the game or are you apartment guys thinking about that?", "replies": [{"id": "cq81k7i", "text": "That is certainly an exit strategy some owners have and is a possibility but there are a few contingencies/changes which can take place which will impact that possibility: (1) Legislation: impacts of Dodd-Frank on the mortgage market coming this August could severely curb the single-family home market (including for sale condos) particularly the $250K and below categories (especially in regards to the ATR - ability-to-repay - provisions in mortgage applications and seller carry curbs), (2) Building/Construction Codes: cities out here recently adopted newer building codes which are extremely prohibitive of apartment to condo re-zoning classifications and, if applied for by a developer can become extremely cost prohibitive to execute.  Nonetheless, there's quite a few already converted to condo apartment buildings out here that investors have scooped up in bulk for individual re-sale later (but does go back to the Dodd-Frank issue raised above.  ", "replies": [], "depth": 2}], "depth": 1}]