Local Condo Market Struggles Amid Covid-19 and Other Market Factors

Even in a good market, condos have a reputation as a risky asset to develop. They generally rely on 1) fairly well-heeled buyers who 2) have specific reasons for not wanting a single-family home and 3) also won’t race to an attorney’s office if a construction defect pops up.

Recent events, however, suggest that if there was a market for condos locally even amid all that, it may have faded for at least the short term.

The first sign was this summer, when Cresleigh Homes backed out of plans to build 87 condominiums at 14th and N streets in Downtown Sacramento. At the time, Wendy Saunders of project partner Capitol Area Development Authority said the change in the financial landscape in recent months made it infeasible for Cresleigh to get a loan.