The responsibility of REALTORS® as economic stewards and the challenges of low inventory were the main points of discussion for the panel. However, each brought their own unique focus and professional expertise to the table.
Since 2011 it has been a primarily rental market, although rental development is projected to slow in 2017. We’re seeing strong for-sale market demand in prime locations, but the number of units being developed are very small. To paint a picture of the low inventory in the downtown market, just over 700 units are not under contract out of 125,000 housing units. 76% of new development units being marketed for sale are selling at at least $700 per square foot; in 2017 we should start to see more of a diversity in pricing, sizing and product type. Developments taking place are for the high-end market because that demographic is less price and market sensitive. De-conversions are a trend right now, with best candidates being buildings with strong rental market and smaller units facing capital improvement expenses.
Downtown Residential: Gail Lissner, Appraisal Research Counselors
Since 2011 it has been a primarily rental market, although rental development is projected to slow in 2017. We’re seeing strong for-sale market demand in prime locations, but the number of units being developed are very small. To paint a picture of the low inventory in the downtown market, just over 700 units are not under contract out of 125,000 housing units. 76% of new development units being marketed for sale are selling at at least $700 per square foot; in 2017 we should start to see more of a diversity in pricing, sizing and product type. Developments taking place are for the high-end market because that demographic is less price and market sensitive. De-conversions are a trend right now, with best candidates being buildings with strong rental market and smaller units facing capital improvement expenses.