The COVID-19 pandemic had a devastating impact on both public health and the residential commercial real estate (CRE) market in urban cores and gateway cities. As people sought more space, apartment rents and condo sales declined.
However, recent statistics from the National Association of Realtors show that condo sales have decreased by only 4.8% year over year in January 2024. This is due to a growing trend of young professionals returning to live in vibrant urban areas.
According to experts such as Séamus Naughten, managing partner at Dolmen Property Group , this shift can be seen through successful sales at projects like Oran , a wellness-focused condominium development located in San Francisco’s Lower Nob Hill area.
Jonathon Cordell from Lendlease also notes that many who can afford city living are now choosing to buy instead of rent due to education about the process and cost comparisons.
This trend is further supported by research showing an increase in migration back towards large urban areas after initial flight during the pandemic. Additionally, creative financing options offered by developers like Lendlease are making it easier for first-time buyers with lower interest rates or incentives for low-income census tracts.
Luxury amenities have also become increasingly important for attracting first-time buyers who may be used to high-end rental buildings with similar features. These amenities include flexible spaces for working remotely or hosting guests as well as technology integration, health/wellness features (such as air purification systems), sustainability initiatives, and communal office spaces designed specifically for hybrid work schedules post-pandemic.
Overall, experts predict that 2024 will see continued growth in demand for condos within gateway cities thanks largely due to young professionals seeking social connections and proximity to work opportunities once again after being cooped up during lockdowns.
