FROM New York to Miami, from South Padre Island, Tex., to Park City, Utah, the American condominium has become the hot new investment for global capital. In Manhattan, the trend is so pronounced that a whole new category of real estate has emerged around the southern edges of Central Park: supertall, ultraluxury buildings, with more than half of the homes being sold to anonymous buyers (some perhaps looking to stash ill-gotten gains) who rarely, if ever, occupy them. The city, meanwhile, struggles to produce sufficient housing for those who do live here.
As policy makers nationwide consider the consequences of this trend, they should keep in mind that it is a result not just of global market forces (and international crime), but also of deliberate local choices, especially about the operation and regulation of condominiums. Read more: