The cooling of the housing market has put a chill on the recent trend of condo conversions which is kicking renters out of their homes from the west side to the east side. The Times reports that no longer are the days when your asshole landlord can bully you out of your rent controlled 1950s shoebox, in order to sell it to a speculator looking to cash in on the boom.
With interest rates up, real estate prices stagnating and many new condo units coming on the market, the easy money possible for conversions two years ago is a thing of the past, [Delores Conway, director of the Casden Forecast at the USC Lusk Center for Real Estate] said. "The whole market has slowed down. The speculators are gone," she said. "I think condo conversions are always the last part of the cycle."Market forces, as they are, may preempt the City Council from placing a moratorium on condo conversions, as had been discussed. However, the political climate in the city has scared off many of the potential converters anyways, leading them to far friendlier locales including San Diego and that pit stain to the north, Las Vegas.
· Los Angeles Condo Conversions May Be Slowing [LA Times]