Rental developments —-> condos?
In the past 10 years, it definitely made sense for everyone to develop rentals over condos with lower interest rates and availability of capital etc. everyone and their mothers were purely apartment builders if your shop is a development shop…it isn’t common to see condo projects being built.
However, with cap rates expanding, rent growth slowing, returns looking not as pleasant and deals not penciling for rentals, I wonder if some peoples and or companies strategies will shift to building condos? Anyone have insight into this?
Will we ever see condo development being a thing or is the liability risk post tax returns and loan guarantees just not worth risking?