A Silver Lining

 

Small Dead Animals reports that mortgage defaults are rising quickly on commercial properties.

It stands to reason: the rise in interest rates hurts commercial property owners just as it hurts residential owners. But with the growth in telecommuting, and the boost it got from the Covid lockdowns, commercial vacancy rates are 20-23%. People are working from home. We have too much commercial space.

The problem is almost its own solution. Too much office space; too little residential space. We need to convert office buildings to apartments. 

These buildings will generally be high and near the centre of the city, reducing commuting costs and fuel use, creating livable mixed urban neighbourhoods, and supporting more efficient public transport.

Of course, working from home, there will be less reason for living in the city. But an apartment anywhere will be desirable.