City Condo Converts
The hot topic in Seattle affordable housing these days is the condo conversion boom — though a forum of Seattle’s “brain trust of housing geeks” demonstrated some disagreement over whether condo conversions are actually a threat to low-income renters. Anecdotal evidence seems to indicate that developers are buying up affordable apartment buildings and redeveloping them into much more expensive units, thus giving low-income renters the boot and forcing them to scrounge for new homes in a more and more expensive housing market.
Preliminary results from a city-funded study, though, seem to indicate differently. Seattle Department of Housing director Adrienne Quinn thinks that condo conversions are not the primary threat to affordable housing in city and that the study shows the number of affordable units in Seattle has actually increased since 2004.
I posted about the study last week — it has yet to be released, and some affordable housing advocates are saying it’s flawed.
One thing there’s no denying is that a lot of apartment buildings are being converted into condos. Look, I even made a red-hot graph, via info from Low Income Housing Institute Director Sharon Lee, of the number of applications to the Department of Planning and Development for rental apartment to condo conversions:
The city study, though, shows that only a small percentage of the units being converted were affordable to begin with. All in all, 32 units affordable to households with incomes less than or equal to 50% of the area median were converted to condos in 2004 (out of the 430 converted total). For 2005, the number converted was 118 units (out of 1551 conversions) and for 2006, 320 units (out of 1423 conversions so far).
Condo conversions are not the only way affordable housing is lost, of course, there’s also demolitions. AND condo conversion could endanger affordable housing by driving up property values all over. But if the study is correct, then it means the majority of condos aren’t bulldozing previously affordable apartments.
What is the area median income?