Just a couple of decades ago, the idea of purchasing a condominium unit was often dismissed as not being financially sound; this was the sentiment just before the United States went through a real estate bonanza that lasted until about 2008. In those days, the arguments against condo purchases were mostly centered on the assertion that attached multifamily housing does not provide land ownership; these days, however, economists and housing market analysts are leaning towards condos as smart investments for various reasons. The current housing market clearly favor condo buyers, particularly those who are thinking about investing in pre-construction projects located in promising cities.
Reverse Migration Towards Urban Centers
Housing trends in North America went through a period of reversal after 2008. Home buyers used to be attracted to suburban and exurban sprawl; they wanted more space than they actually needed, and they believed that gated communities and master-planned developments with “McMansions” were the future of housing despite the long drives to work, school, shopping centers, and even medical clinics. The suburban exodus that started in 2008 was caused by a desire to downsize and live closer to job and educational opportunities. Downtown areas have been revitalized with new condo housing opportunities while the suburbs have been abandoned. In 2015, researchers at Cornell University published a study in the American Sociological Review journal summarizing the positive effects of the suburban exodus on urban centers; one of the conclusions was that this trend can be expected to continue through 2030.
Carbon Footprint Reduction
Compared to single-family homes in the suburbs, condos tend to be eco-friendlier, particularly in 2018. Numerous studies have measured the lower carbon footprint generated by condo dwellers, who are more likely to use public transportation and consume less energy. Moreover, new condo projects subject to greater scrutiny by green building and general code inspectors, especially with regard to green construction guidelines.
Condos Are The Future of North American Housing
In Canada, Mexico and the United States, urban planners are welcoming the ongoing trend of smart urbanization that is making North American cities function more like European, Asian and South American metro centers, and this is why it’s smart to buy pre-construction condos in 2018. There is also a greater tendency towards infill development, which consists of converting abandoned shopping centers, military bases, factories, and even parking lots into housing structures. Infill development means more opportunities for mixed-use zoning that will allow retail and office spaces to be located closer to residential neighborhoods; the goal is to make it easier for people to be able to walk to their jobs, schools, stores, parks, and local attractions.
Increased Demand For Condo Properties
When taking into consideration all the factors listed above, it is not surprising to learn that condos are in high demand. In some housing markets such as Toronto, San Diego, Minneapolis, and Guadalajara, condo units have been eliciting bidding wars for years, and market analysts believe that these conditions will remain in place until at least the year 2020. As long as quality of life continues to improve in urban centers, prospective buyers will be interested in condos. There is also the rental market to consider; condo units in urban centers that are major tech hubs are quickly being rented to professionals who can afford high monthly payments, especially if the buildings offer attractive amenities.