Condo Boom

I grew up assuming that condos were for rich people and that rich
people were bad. So it's a bit ironic that I'm now loving the condo
boom here in Philadelphia. Let me explain.

The condo boom is fueled partly by demographics -- those active
boomers are now empty nesters and they're flocking back to cities for
the vibrancy and the culture. Part of it is rising incomes, which
enable both those aforementioned boomers as well as young
professionals to afford condos. Part of it is the flight to the
suburbs of professional and manufacturing jobs, leaving behind old
factories and offices that can converted into condos.

And part of it is city policy -- a ten-year abatement on property
taxes for any new construction makes buying a condo all the more
affordable, since you don't have to worry about the property tax bite
every year. So the city isn't gaining anything -- yet -- from all
these new condo owners within city limits, in terms of more property
tax revenues. But those new condo owners are buying things and
consuming leisure in city limits, and that does help.

It also stems, although not by much, some of the excessive
decentralization that is happening in Philadelphia as well as other
cities. Some heads are moving from the suburbs into the city, and
others are moving into denser locations within the city. This
popularization of high-density living is a nice check against sprawl,
although again not a huge amount compared to the massive flight to the
suburbs by most people.

Who knew that I'd feel so good about a condo boom?