Condos accounted for just 5.5% of all construction of multifamily housing in the U.S. in the first quarter, the lowest ratio on record, as demand has been hit by post-crisis rules on condo mortgages and by some consumers’ shift in favor of renting.
Source: www.wsj.com
Reforming FHA condo lending guidelines is paramount to reviving owner occupant entry level condo purchases. We expect the private market will find an innovative solution to this niche in short order. There is far too much opportunity in this inefficient corner of housing finance to not see innovation.