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by Michelle Z. Askeland
Entering 2017, the rapid accelera-
tion of Denver's multifamily market
seems to be cooling. Yet, it’s not
doom and gloom but, rather, a set-
tling back onto familiar ground.
Before diving into what experts
around the industry are saying, here
are some current statistics to keep
in mind for the seven-county Denver
metro area, according to Cary Bru-
teig with Apartment Appraisers &
Consultants:
•9,800 units were completed in
2016.
•25,382 units in 112 properties are
under construction, as of the end of
January.
•26,884 units are proposed in proj-
ects, as of the end of January.
•52,266 units are in the total pipe-
line (units under construction plus
proposed).
The numbers tell a convincing
story. If we continue to add units
to the market, eventually we’ll hit
an equilibrium of units vs. renters.
However, Denver’s unprecedented
in-migration throws a wrench into
the equation – we don’t know the
actual need today, what it will be in
a few years or what millennials will
desire for their housing as they age.
A trend toward higher vacancies
and slower rent growth solidified
over the last few quarters, accord-
ing to Apartment Insights’ fourth-
quarter 2016 statistics and trends
summary. In addition, absorption
slowed, rents decreased and sales
were down in the fourth quarter,
according to the report. But it was
still a record year for sales volume
and prices.
In mid-January, the Apartment
Association of Metro Denver
announced that rents across metro
Denver decreased by the largest dol-
lar amount in the 36-year history of
the report. Average rents for nearly
120,000 Denver apartment units
decreased from $1,371 this summer
to $1,347 in the fourth-quarter, the
report said. Median rents remained
flat at $1,329. Rents decreased and
vacancy increased in all six of the
counties covered in the survey –
Adams, Arapahoe, Boulder/Broom-
field, Denver, Douglas and Jefferson
counties, according to the report.
So, what does it all mean? Experts
After years of double-digit rent growth and tight occupancy rates, both figures are expected to see only moderate increases in 2017.
Market cools to steady,
sustainable pace
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