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Page 2 — Multifamily Properties Quarterly — May 2017
Letter from the Editor
T he Downtown Denver Partner-
ship’s 2017 State of Downtown
Denver report allows us to dive
deeper into one market seg-
ment to better understand the
supply-and-demand balance.
Since 2000, the residential popula-
tion of downtown Denver has tripled,
according the report. A total of 79,367
people live in downtown Denver and
the city center neighborhoods. The
city averages 15,000 new residents per
year, making it one
of the fastest-grow-
ing large cities in the
country.
In an attempt to
keep up with this
population growth,
3,817 additional resi-
dential units were
completed between
2014 and mid-2017
in the downtown area, which was
estimated to support 4,499 new resi-
dents. There are an additional 5,341
residential units in the pipeline, which
will support 6,295 new residents once
completed, according to the report.
Denver will need to keep a steady
development pace even after these
apartments are completed to accom-
modate the expected continued
growth in the city center. By 2022, the
report predicts that the population of
downtown Denver will be 24,408, and
the surrounding city center neighbor-
hood will see a population of 87,345,
which would represent a 56 percent
growth rate from 2000 to 2022.
These downtown residents largely
comprise nonfamily, white house-
holds, with an average size of 1.42
people. Males outnumber females, 56.2
to 43.8 percent, and the average age is
34.3 years old. The downtown popula-
tion’s average household income is
$113,565 and 44 percent have a bach-
elor’s degree.
These statistics are important, espe-
cially when you consider that the
average rent for a one-bedroom apart-
ment in downtown Denver is $1,574.
Obviously, the job market is crucial
to maintaining a healthy multifamily
market.
Denver’s unemployment rate is 2.7
percent, metrowide. For compari-
son sake, the nationwide rate is 4.5
percent. This can be a double-edged
sword when weighing the long-term
vitality of Denver’s in-migration as
it becomes more difficult to find
employment – time will tell how the
market handles it.
Multifamily activity remains strong
across the state, not just in Denver.
This most recently was demon-
strated by the record-breaking sale of
Boulder’s 17*Walnut, which sold for
$600,000 per unit, or $654 per square
foot.
Within this issue, you’ll read about
the market’s solid fundamentals as
well as a few areas to keep an eye on
regarding affordability, condominium
development, tax issues and regula-
tory challenges.
As always, thanks for reading.
303-623-1148, Ext. 104
CONTENTS
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Link 35
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