Explaining the “Condominium Comeback”

The COVID-19 pandemic initially led to a decline in condominium and co-op sales in urban cores and gateway cities, as people sought more spacious surroundings in the suburbs. However, recent statistics from January 2024 indicate a rebound in condo sales, with experts highlighting a return to urban cores and a resurgence of demand in gateway cities. Factors such as practicality, the return to office requirements, and financial savings during the pandemic contribute to the renewed interest in condo living, supported by creative financing options and a focus on amenities, particularly those related to health and wellness.

Amenities have always been a lure to attract residents, whether they want to rent or own. These days, condo developers and sellers understand this. According to Miles Carter, senior counsel at Allen Matkins, amenities have become hugely important, especially for first-time buyers.

“Historically, developers resisted including big-ticket, luxury items that would result in higher monthly HOA assessments,” he said, adding that such assessments tended to scare off first-time buyers. However, developers are meeting demand and incorporating luxury amenities into their properties. This is the case “especially when those buyers can justify or offset increased assessments by canceling their gym memberships or using the communal office space to ‘work from home,’ Carter explained.

The experts anticipate a positive outlook for the condominium market in 2024, especially in urban cores.

Read the full article here.