Quote:
Originally Posted by RED_PDXer
I doubt the market is saturated with studios yet because they are often the most affordable options for singles and the most profitable for developers (I imagine this is the case given how much studios can command per square foot). Does someone know this for sure?
I think that would be a pretty big leap for a developer to be so forward thinking beyond what makes sense now for marketability. Also, I'm not sure the city's policy towards SDC credits is established on the point of combining and then restoring individual units. That would be a big loss to spend on combining units and foregoing $15k+ on SDCs for each lost unit.
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From $1,308/mo for 399 SF studio. $3.28/SF.
From $1,439/mo for 569 SF one bedroom. $2.53/SF.
The pro forma can handle a much lower occupancy rate for the studio than for the one bedroom.
(That's from "Lower Burnside Lofts" website.)
Exactly what demographic all this new build is for, I dunno.