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Condominium Rentals and the Supply of Rental Housing

The rental housing market has been characterized by considerable change in recent years. Among the developments has been the conversion of rental units into condominiums and cooperatives. Concern has been expressed about the negative effect of these conversions on the supply of rental housing. What is often overlooked, however, is the positive effect on the supply of rental housing of the rapid increase in the number of rented condominium and cooperative units. Making use of published data, it is estimated that, during the 1970s, the increase in the number of rented condominium and cooperative units in the United States exceeded the number of converted rental units. There is considerable variation in the pattern, however, across areas of the country.