ALGONQUIN – It’s hard to say when the condo market will improve to support new, owner-occupied units in what one real estate professional calls “a tale of two markets.”

Matt Farrell, a managing partner for Urban Real Estate in Chicago, said properties that are well-established and have condos that are being resold by tenants are doing well. But new properties in which developers are adding to the supply of condominiums are not.

A slowly recovering housing market is behind a proposal to switch the residential portion of the Riverside Plaza project in downtown Algonquin to renter-occupied apartments from owner-occupied condominiums.