Marc Heller gave insights into a recent move by condo developers to begin renting units, instead of selling, in order to save properties. Heller told GlobeSt the trend can lead to weakened demand for condo units, especially in markets where there is a large affordability gap between high-end apartments and affordable housing.
“A lot of condo developments that kicked off several years ago, many of them literally or effectively come to resemble rentals than condos,” Heller said. “Some condos developers have abandoned selling units because they’re only able to sell 10 percent and rent the rest of the 90 percent.”