Though no rental units are scheduled for delivery this year, condo construction spiked during the first half. In the first quarter, for-sale multifamily permit totals were higher than the last three quarters of 2006 combined.
Encouraged by consistently healthy sales in the condo market, developers are expected to bring approximately 800 condo units online this year in Providence; another 600 are in the planning stages. Statewide, more than 1,000 condo units were under construction in August 2007.
This should not, however, negatively impact the rental market, as investors pick up many of the new condos. One of the largest apartment developments under way is the Worcester Mills Artiste complex in the Village of Greystone, a community located in the northwester n cor ner of the city of Nor th Providence. Upon completion in mid-2008, the development will add 136 rental units to the metro, increasing inventory by 0.9 percent.
Still, those builders who have shifted away from rental developments have demonstrated a particular penchant for the downtown Providence area.
For example, two projects totaling about 330 units are under construction downtown and scheduled for a mid-2008 completion. They make up the majority of condo development in the metro area. The Waterplace Park con-dos, located next to the park of the same name, will increase the area’s luxury condo inventory by 193 luxury units. The other large project, One Ten Westminster, will bring another 130 units to downtown Providence. This development will redefine the Providence skyline as the tallest building in Providence and the tallest residential building in New England. (Editor’s note: Look for more on tall buildings in the October 2007 MFE.)
Affordable housing remains a hot topic in the Providence metro. In July, the Housing Resources Commission awarded $10 million to affordable apartment, housing, and condo projects in Providence and its surrounding suburban areas. Approximately $7.5 million will go specifically to both new construction and the redevelopment of apartment projects in the area with an affordable component.
Additionally, of the 20 projects awarded money, half will be new apartment projects comprising nearly 340 units. Although these units are not expected to directly compete with current market rentals, renters falling on the cusp of affordability guidelines could migrate to these projects.