Growing Popularity of Condos Rejuvenating Urban Areas - 1/24/2005 - Condominiums Townhouses Cooperatives

Growing Popularity of Condos Rejuvenating Urban Areas

The condo market, in particular, has been thriving, the experts said, as more and more people look for homeownership opportunities close to jobs, restaurants, entertainment and public transportation.

“Condos made up 30% of new multifamily starts in 2004, which is a record-high percentage,” according to Gary Benson, president of Garrison Partners, a Chicago-based firm that specializes in condo conversions.

Benson said that buying a condo is an appealing option for a number of niche markets: empty-nester baby boomers; young, well-paid professionals from the echo boom; and a growing number of new residents arriving from other countries, who are often more accustomed to living in high-density areas than their American counterparts.

“The urban experience has drawn aging boomers and echo boomers back downtown, while many young singles and couples have turned to condominium ownership to take advantage of low interest rates and as a first step toward accumulating net worth,” said Benson. “In a time of double-digit home price appreciation in many urban markets, condos have appreciated at higher rates than single-family homes. Even so, condos are often the most affordable option for first-time home buyers in desirable urban locations.”

Design trends in new rental apartments as well as condos have been kicked up a notch in recent years to appeal to today’s sophisticated renters and condo buyers, according to Paul Campbell, a principal with Kephart, a Denver-based architectural firm.

“High-tech features like wi-fi and broadband access are now standard in most apartments,” said Campbell. “We’re also seeing more open, flexible floor plans with more creativity in kitchen design.”

With many developers starting new apartment communities with an eye toward converting them to condos, appliances and finishes are also being upgraded. “There is a real emphasis on quality as well as style in the luxury apartment market,” noted Campbell.