While some real estate developers and investors continue to look to build new or for conversion opportunities in big cities, the movement to keep what is currently there has momentum in some locations. It is a reflection of why basing important decisions only on how the numbers pencil out may not be enough to make a solid decision.
One example is among the ordinances which were just approved in Baltimore as part of their government plan to ease access to existing affordable housing. When, as shown in the earlier proposal linked below, ordinances allow one stairway (instead of two) for a six-story apartment building, you know that the goal is to keep residents within the city limits. However, the more important components are elements like easing parking requirements and other building and zoning code requirements to actually make it more favorable for development.
It is possible that a developer of a new housing structure, whether entirely or partially affordable housing, may not have been aware of the proposed ordinance when signing off on the deal. The potential difficulty of leasing their entire space may be reduced as the ordinances take effect in relation to construction and availability. Or, there could be elements which make new construction even more favorable!
To me, it's like when your favorite football team scores a touchdown. Some people immediately cheer, while others take a moment to make sure there are no penalty flags. When it comes to real estate, it does not all have to happen in a split second, but your proposal can still be "first in". Having the best and most thorough research makes sure there are no penalty flags.
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