How are condo conversions treated?
When an apartment community is converted to condominiums, two things occur. First, the supply of rental apartments has been reduced; therefore the number of conversion is subtracted from new construction to get the net change in supply, which we report as net completions. Second, the number of occupied rental units has also been reduced, therefore the previously occupied apartments (now occupied by home owners) is subtracted from the absorption figures to arrive at the net absorption which we report.
