Denver Colorado Apartment Construction

[Bill S.]

The Denver market MAY add 20K units in the next 2 years. Denver Business Journal Article Local landlords may want consider this if they are projecting rent growth in the next few years. Historic average construction adds about 3K units per year. We are a bit behind the past few years but it looks like the developers ramping up and if everything happens they may be a bit out in front of demand toward the end of next year.

Most of the units I am aware of in and around the downtown market are in the $2 per square foot rent range and are "luxury" units. This is a bit above the current "average" market but as stated there is under supply.

Certainly the new supply will push down or at least slow down rent growth.

Denver needs to significant population growth from migration and employment growth to keep all those units full.