It is estimated that another 4,100 apartment units are in the process being converted, while another 2,900 are n the planning stages, with estimates of over 15,000 ultimately planned. These condo conversion projects meet the price range needs of first time home buyers, lower incomes, and investors.
Currently, over 23 condo conversions are in planning or sales stages, with many in final sales stages. These conversions have seen a dramatic price increase in the first half of the year. In January 2005, the average price for a two bedroom condo was about $150,000. As of September 2005, the median sales price was over $208,000, on average selling for over $200 a square foot, but with the median home prices reaching just almost $300,000, for the same month, a condo has now become an affordable entry level option.
The condo conversion market is also creating an appealing rental market for investors. As 7,000 to 15,000 rental units are converted, this is having a positive impact the rental prices. As the demand of new residents, many of whom are being relocated and can afford higher rents, more Class-A apartments are being built but since June 2005 only 355 apartments units were built to meet this demand. Rents are already starting to increase as the supply diminishes with the condo conversions and the demand continues with the influx of new residents and businesses.
Olivia
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