Condo-mania in Philadelphia

Since 1998, over 12,000 residential units (mostly condos) have sprouted up in Center City. Citywide, there are more than 15,000 new single-family homes and condos proposed (see story). Why is this happening? A couple of reasons: (1) Tax Benefits: Philadelphia offers a 10-year property tax abatement on commercial and industrial buildings converted to residential use and for new residential construction; and (2) Demographic Trends: Baby boomers with money are looking to downsize and move back into the City for the social and cultural amenities and young urban professionals are looking for relatively inexpensive first homes that are close to their jobs and social lives in the City.