Shadow inventory! It sounds sort of scary—and it is sort of scary, especially if you're in the market for a new development condo these days. In short, it's the units in new (or under construction) buildings that haven't hit market yet, usually because developers are holding them back so as not to overwhelm the market. Per Crains, some stats from the glutted posterchildren of Williamsburg and FiDi:
· In addition to 10,445 unsold condos, there may be as many as 7,000 more condo units, per a spring report by market maven Jonathan Miller;
· In the Financial District, 410 condos are for sale—with up to 1,000 more lurking in the shadows;
· In Williamsburg, where there are 2,820 condo units currently for sale, 2,760 more will come online next year.
Another shadow factor: as more developers switch condo buildings to rentals, it's having a depressing effect on rental prices, as well. Not that this isn't anything we didn't all know, but the numbers are sobering on this sultry Monday morning. Back to bed!
· Shadow Units Cast Pall [Crains]