Construction of new luxury homes has been at a near-standstill for the last five years, but might we be seeing a resurgence of luxury apartment building in the most unlikely place:
In the past year, we have watched and quietly commented on the construction of what appeared to be upscale condominiums in La Costa, located in south Carlsbad and just north of San Diego proper. The development overlooks the world famous La Costa Resort and coincidentally, happens to fall within one of the most coveted school districts in all San Diego County.
Regardless, imagine our surprise when we discovered that these Mediterranean-influenced homes would be offered as luxury rentals rather than the townhomes we expected. Ranging from 1350 to over 2000 square feet, Costa Pointe rents will range from $2300 to $3800 per month according to research done at the La Costa real estate source, La Costa Online.
It was a disruption, of sorts, in San Diego real estate.
We speculate that the rental offering may be a solution that allows the builder to hold onto the property, create cash flow, and then re-offer as condominium sales when the local real estate market strengthens and appreciates.
Are you seeing similar phenomena in your local markets? Are luxury apartments in the suburbs the upscale town homes of tomorrow? It is a trend we are closely watching.
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