In the United States, new luxury condo construction is still largely a “somewhat rare” phenomenon, according to a new US study.
The study, which was published on Monday by the American Institute of Architects, also finds that new condos built in 2016 and 2017 were mostly constructed for higher income residents, who typically pay higher taxes than their less wealthy counterparts.
The study, commissioned by the real estate industry and authored by George D. Schaller of the Chicago-based Schallers, found that condos built during the recession and the Great Recession were more expensive to build than those built during boom years.
The new study, however, finds that condos constructed between 2007 and 2016 are generally more affordable to the average American, particularly for first-time buyers.
In 2017, the average price of a condo in the US was $621,000.
The average price for condos constructed during the boom years was $821,843, according the study, and was $3,700 more than the average for the period from 2007 to 2017.
“The median value of new condos sold in the U.S. during the years leading up to the Great Depression was approximately $637,000, which equates to $20,500 in 2016 dollars,” the study states.
The median price of condos constructed after the recession was $1,085,000 and was also higher than in 2017.
The number of condos in the United Kingdom is slightly lower, at 1,842, and the median price was $4,400 higher than the 2017 median.
The United States had 1,739,000 new condo sales in 2016, according an analysis of Census Bureau data by The Wall Street Journal.
That’s down from 1,930,000 sales in 2017, but still well above the number of new homes built in the country in 2016.
The numbers are similar for New York, where new condo construction has been rising at a slow pace.
In 2016, 1,921,500 new units were built in New York.
In 2017, 1.4 million new units came on line in New Jersey, and 2.1 million units were added to New York City.
New condos are still relatively rare in the cities they’re built in, however.
In New York in 2016 there were 8,200 new condos under construction, according a report by Real Estate Analytics.
In 2019, the year before the Great Crash, there were 4,500 units in New Yorks condo market.
The market for luxury condos is expected to remain largely depressed in the years ahead.
However, as more luxury condos are built, demand is expected in the luxury market to continue to rise.