Condo Conversions Pitfalls
Condo conversions can be a double edge sword, however, as conversions likely will hurt most rental markets. While condo conversions benefit multifamily owners by shrinking the supply of apartments, condo buyers are typically renters, so conversions won't necessarily lead to a jump in occupancy rates. In fact, some conversions directly compete with apartments because they end up as rentals. Also, many renters currently living in an apartment when it is bought and turned into a condo cannot afford the price of the condo. They are left searching for a new place to live. If they can afford to stay and choose to buy the condo, they are most often offered a much cheaper price than outside buyers.