USA Today reported today that a large number of new condos and previous condo-conversions in San Diego and some other major cities could be converted (or re-converted) to apartments for rent in the next 18 months. Here’s what they reported:
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.
The story continues:
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.
The LA Times published a similar story today examining the political climate surrounding the condo-conversion concept in Los Angeles.
That story reports:
Projects that have been in the pipeline for months or even years are now underway, pushing large numbers of renters out of their apartments. Los Angeles Housing Department records indicate that conversions have taken at least 11,000 rental units off the city’s market in the last five years.
Tenant advocates are lobbying for a moratorium on the practice.
That pressure has pushed many condo-converters to the San Diego area, where the climate surrounding the issue is more neutral, the LA Times reported. Twice as many apartments have “gone condo” in San Diego as in LA in recent years, according to the story.