The low interest rate affliction that has crippled apartment
(rentals) fundamentals for several quarters is driving the biggest condominium conversion boom in two decades.
Conversions create more affordable housing in areas famous for steep single-family home prices.
Nowhere is the conversion craze hotter than in Florida, which is enjoying an influx of young, educated workers and second-home buyers from South America and Europe along with the northern snow birds that routinely flock to the state in winter. From Miami in South
Florida to Orlando and north, developers are buying rental
projects, upgrading them, and selling them off as condos to the general
public.
While some purchase the
units for their own use, others acquire these residences as potentially
income producing investments. Many economists forecast an
significant increase in rental rates as interest rate increase.
(Please keep in mind that Mazor Realty, in compliance with the law,
does NOT provide investment advice.)
