In addition, as apartment project values are eroded by high vacancy rates and lower rental rates, condo conversions will become an increasingly attractive alternative for apartment owners, the Genesis report goes on to say. That will be especially true for apartments built within the last few years, as many of those were built with the idea of conversion as an exit strategy, according to Genesis.

The Genesis report says that will provide stiff competition to the lower-end of the for-sale housing market, "And if interest rates remain low, apartment owners will have an increasing financial incentive to convert to condominiums and compete with the attached for-sale market."