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Condo buyers fall into all categories. Buyers of the Floridian condos are shelling out big bucks for a lifestyle upgrade, for example. But in San Diego, condos offer an affordable alternative to single-family home prices, which have climbed 25% to nearly $480,000 over the past year, according to CB Richard Ellis. Potential homebuyers unable to pay those prices can purchase a condo for some $300,000.

That kind of price discount has made San Diego ground zero for condo conversions in California. In 2003, developers converted some 3,000 apartment units to condos, nearly five times the 619 units converted in 2002, according to a report compiled by CB Richard Ellis and L.J. Melody. Developers will convert 4,000 units this year, says Gary London, president of the London Group in San Diego, a real estate strategy and analysis firm that focuses on Southern California.

“The phenomenon started with higher-quality units in the better neighborhoods, but now conversions are everywhere there is inventory — even down into the Class-B properties,” says London. “Condo conversions are almost the last bastion of truly affordable housing in San Diego.”