Condo Construction Is Slow, Though Sales Prices Are Up

New York, NY, May 6, 2015—In many recovered housing markets, Americans are paying more for condominiums than they did during the housing boom, but developers are barely building enough new condominiums to meet that demand, reports National Real Estate Investor.

Eventually, however, new condominium construction is likely to rise to historically normal levels and will probably benefit from the same demand for downtown apartments that has helped fill many rental communities.

In addition, condominium developers are also doing little to convert existing rental properties into condominiums.

The condominium business is being held back by the same forces holding back single-family housing, the real estate journal reports. Overall, homes are now selling at a slightly faster rate than during and immediately after the financial crisis, but many households that would normally buy continue to rent.