It had to happen eventually: downtown condos are not the crown jewel they once were. Downtown condos may be losing their steam, but that doesn’t mean that developers think that people don't want to move downtown. According to a recent report by Marcus & Millichap, a real estate investment and research firm, condo conversions are on the decline, while apartment units are on the incline:
In the first half of 2006, about 240 Downtown apartment units came on the market - roughly the same number as in the previous year. However, the second half of 2006 will see nearly 1,500 apartments enter the Downtown market, a 36% increase from last year and almost 30% of new units in the entire metropolitan Los Angeles area. Don’t worry. Overpriced downtown living won’t go away anytime soon; it will just be in the form of a lease and not a mortgage.
· Rentals Revving [L.A. Downtown News]