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Living At The Office
Lower rates are stoking demand in a still-distorted US housing market.
Mortgage applications rose a third week, the MBA said Wednesday, even as the average 30-year fixed rate ticked higher to 6.78%.
Note that the three basis point week-to-week rate increase was just the second since October. That speaks to the remarkable bond rally set in motion on November 1.
"Mortgage rates increased slightly last week, but there continues to be an upward trend in purchase activity," MBA VP Joel Kan said,
Office-to-residential conversions were a thing in 1990s New York City. The great majority of converted units were in pre-war (as in WW2) buildings. With openable windows, shallower floorplates, more natural light, etc those buildings are easier to convert. A 1970s-later highrise office building with large floorplates is extremely expensive to convert.
As mostly Class C office space, they are also the least likely to survive as office properties.
Hotel-to-residential is easier from a physical standpoint (units already have bathrooms and the associated systems) but the financial impetus is, currently, much lower.
Office-to-residential conversions also bring more people to currently de-occupied downtowns.